Tuesday, 11 July, 2000
European new-crop prices are being affected by the recent weather. Storms and heavy rain have meant a postponement of harvest across much of northern Europe. In Southern Europe a recent heat wave has affected quality and yields.
French new-crop malting barley is currently 30 above the intervention price. This has arisen due to potentially lower spring barley production and weather problems.
German crops are coming under even more pressure following the poor weather. Yields and quality are now a concern particularly for malting barley. Trading is slow for bread grains and malting barley and insecurities over the 2000 harvest quality has put pressure on remaining old crop supplies in some regions.
Italian new-crop grain prices are rising amid the recent hot weather across South Europe, with concerns over yield. Total domestic demand is unlikely to be met by domestic production, thereby creating an opportunity for imports.
Spanish farmers have been asked by the Spanish government not sell their crops below the minimum guaranteed price. There is concern that, due to the large crop expected, farmers will dash to the market and receive less than they should.
1 = 62.8p at time of writing.
Around half of the winter barley has been cut but recent storms have put a stop to the harvest. The main wheat harvest, which is due to start in a weeks time, could also be adversely affected if there is any more rain.
Taken from HGCA weekly MI Bulletin
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