HGCA reports firmer EU milling wheat market

Tuesday, 03 October, 2000

  • The EU milling wheat market firmed following another week of quiet trading, with traders waiting for fresh export demand on the world market.

    EU export licenses are currently 59% below the level for the same point last season, which is pressuring prices. French milling wheat was trading at around Euro120 last week.

  • EU malting barley trade reportedly saw solid trading volumes, with the purchasers of French barley specifying the preferred region due to variable French quality results.

    On the feed barley side, Tunisia purchased 112,000 tonnes of European barley last week.

  • Feed wheat demand remained strong with interest coming from Italy and Spain.

    This helped to support prices despite the recent strength of the Euro against the US Dollar following last Fridays intervention in the Euro.

    Iran purchased between 300-500,000 tonnes of French wheat last Thursday.

  • The maize harvest in Italy is virtually finished with early reports saying yields and quality are both good.

    Meanwhile in Spain, domestic maize prices are now coming under harvest pressure.

    Frances maize crop is slow to appear this season, which is placing a real premium on nearby shipments.

  • The German cereal market is currently flat as it enters its seasonal quiet period.

    There is a general concern that the wheat market is going to lose its export potential, as current export licenses to third countries are 119% below last year.

    Some German maltsters are seeing tight supply, which is resulting in demand for non-contract malting barley.

  • Euro1 = 59.91p at time of writing
  • 4th Annual Crops Marketing Conference, 04 October, 2000

    Taken from HGCA weekly MI Bulletin
    To contact the HGCA phone 020 7520 3972

    Click here to visit the Home-Grown Cereals Authority

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