Tuesday, 27 June, 2000
THE EUs 2000 soft-wheat harvest forecast was raised to 96.6 million tonnes by Coceral. This is an increase of 8% compared to last year, and has been attributed to a 10% increase in area sown to 14m hectares.
Coceral also forecasted the EUs 2000 barley harvest at 50.5m tonnes, up 3% on 1999. While the area sown is expected down 5%, average yields are thought to be up 8%.
Malting barley has started to be harvested in Europe with some concern over the quality due to the warm temperatures. However, recent rains and cooler temperatures have been largely favourable for spring barley development.
French wheat prices reportedly saw some price support last week as Morocco purchased 80,000t and Tunisia bought 75,000t of its wheat.
Germany is reporting drought damage to crops in the north-east and central Germany, with the spring barley area reported sharply down this year. Tunisia purchased 25,000t of German wheat last week, which lent some price support.
Spains harvest of winter cereals is well under way in the south. The reports are continuing to be good, which is said to be depressing prices. There was some selling reported last week as dealers who were still holding old crop grain decided to sell before the new crop arrives. Barley left over from intervention sales was the main cereal sold, it is believed.
Portugal has increased its forecast yields for winter planted cereals, whilst stating that spring maize planting is down due to the heavy rain the country received during planting.
1 = 62.15p at time of writing.
Taken from HGCA weekly MI Bulletin
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