Wednesday, 31 May, 2000
European wheat prices were down last week compared with the previous week, as there are very few buyers active in the market. This indicates that the 1999/00 campaign is coming to a close.
So far this season MANCOM has granted EU export licenses for 10.65 million tonnes of wheat and 9.77m tonnes of barley, compared with 8.91m and 7.34m tonnes respectively for the 1998/9 season.
European feed barley prices were also down as we approach new crop, with French prices falling by nearly 11 on the week. These price falls come despite reports of Morocco buying 60,000t of optional-origin barley, and Iran purchasing 100,000t of optional origin barley for July shipment.
Algeria purchased 25,000t of French wheat last week. France has offered 1.64m tonnes of grain into EU intervention stocks so far this season, compared with 1.56m tonnes for the same point last season.
Spanish wheat and barley prices fell last week as farmers are due to start harvesting soon. New-crop prospects are still looking excellent despite the decline in rainfall over the last month. Further price weakness is therefore a possibility. Coceral has estimated that Spains total cereals crop this year will be 18.7m tonnes compared with last seasons 16.9m.
Last Friday saw MANCOM extend the deadline for many EU farmers to 15 June for spring planting of maize, sorghum and sunflowers.
1 = 62.3p at time of writing.
Taken from HGCA weekly MI Bulletin
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