Exports support Europes grain markets

Tuesday, 01 June, 1999

  • EXPORT business continued to support values in
    Continental grain markets over the week. French
    milling wheat prices gained from the recent Algerian
    wheat purchase, and moved closer to intervention
    price levels. Domestic markets saw prices firmer
    due to short-covering.

  • THE EU decision to proceed with the next food aid
    delivery to Russia, after delays, gave
    some price support to the market and helped to
    relieve some of the pressure on intervention. The
    160,000t of wheat from intervention stores
    is of French and Danish origin.

  • NEWS that Saudi Arabia is looking to sell 890,000t of feed barley from its stocks on to its
    internal market put pressure on EU barley prices.
    Saudi Arabia tends to import 5-6million tonnes of feed
    barley a year.

  • INTEREST in German milling wheat was reported
    from Holland and Belgium this week. Possible
    Tunisian interest was also noted, but for wheat of
    superior quality, supplies of which are reported to
    be lacking.

  • GERMAN deficit regions saw some demand for old-crop wheat, while most interest is now focused on
    new-crop. First indications suggest delivered new
    crop values at DM225/t and DM205/t for wheat and feed barley respectively.
    Hannover November futures are now trading at
    values above the intervention price, gaining support
    from EU export sales.

  • IBERIAN grain markets reflected the markets
    attention turning to the new crop. Wheat prices
    received help from short-covering and a firmer
    French market.

  • SMALL volumes of Greek durum wheat have been
    imported into Spain, and are expected to continue
    over coming weeks because of the recent drought
    problems. Durum wheat, however, does not
    compete directly with other EU wheat.

    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 0171-520 3972

    Click here to visit the Home-Grown Cereals Authority

  • See more