HGCA records healthy start to EU export season

Tuesday, 17 August, 1999

  • The EU grains market welcomed the Commissions healthy start to the export season with its export award of 292,500 tonnes of free-market wheat on 5 August.

    French wheat prices rose on this news, but also gained support from a lack of sellers and continued export demand.

    Irans demand for EU wheat, with its purchase on Thursday of 100,000 tonnes of French wheat, may be a sign of things to come. Its last major purchase was back in July.

    Hit by the worst drought in 30 years, Irans wheat import requirements for 1999 are said to be 5.6m tonnes, almost twice the amount imported over 1998.

  • The German Agriculture Ministry forecast a 5.8% lower 1999 grain harvest compared to last year. The decline is almost entirely due to a 5.7% fall in the planted area which is mainly concentrated in the south of the country.

    The wheat harvest is some 25 % away from completion with most stores on farm filled. Limited storage capacity in the East of the country is said to have forced farmers to store grain outside.

  • Italian maize prices received some support from harvest delays in the north of the country. The delay has left a delivery gap between old- and new-crop at a time when demand for maize appears to be especially strong.

    Lower yields are expected from the recent drought, particularly in non-irrigated areas.

  • Spains 1999 grain harvest is projected to see a gap of about 4.5m tonnes at 13.4m tonnes, compared to last years harvest of 17.15m tonnes. Yields per hectare have been hit by the drought across the country, although the north is said to have fared better.
  • Danish feed wheat export prices continued to remain steady and competitive against French and UK-origin as traders await quality results.

    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 0207-520 3972

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