European Grain Prices – HGCA
Trading on EU wheat markets remained quiet last week, with most participants awaiting further quality results of the Northern European wheat crop.
Concern over lower than required milling quality kept milling wheat prices firm in France and Germany, while prospects of greater feed wheat availability pressurised French feed wheat.
However, Thursdays MANCOM decision to limit wheat exports pushed MATIF milling wheat lower at the end of the week, as traditional French wheat buyers could purchase from the US instead.
Malting barley quality has reportedly also suffered in France and Germany this year, while fewer problems have occurred in Denmark and England.
Trade sources reported malting barley trade to Eastern Europe last week, where adverse weather conditions have reduced quantity and quality of this years malting barley crop.
In Germany the cereal harvest is nearing completion. In total it is estimated to have harvested 44.9m tonnes of grains this year, compared to 44.5m in 1999. Wheat output is set at 21.2m ha (19.6m in 1999), while the barley crop is estimated lower at 12.2m (13.3m in 1999).
German millers are reportedly able to purchase milling wheat despite regional quality problems. However, higher transport costs are expected to increase the quality premium.
This years Dutch grain crop is estimated at 1.6m tonnes, the largest since 1969. Wheat production has reportedly risen by 40% to 1.2m tonnes.
The Danish grain harvest also shows yields above average and the quality is estimated to be the best in years.
1 = 61p, 1 = 1.65088 at time of writing.
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Taken from HGCA weekly MI Bulletin
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