Tuesday, 31 October, 2000
1 = 58.12p at time of writing
- EU grain prices were generally flat last week on thin trade. Only malting barley markets continued seeing consistent price rises across the EU, with malting barley prices generally some 40% above intervention prices. EU barley also saw some interest from Morocco, Tunisia, Saudi Arabia, and Jordan.
- The weak Euro is aiding European grain prices, making them competitive on the world market, while allowing the Commission to avoid issuing positive export refunds.
- EU malting barley markets are seeing purchaser demand switch from French optional-origin contracts to Danish and UK sources instead. The change is due to concern over the quality of the crop from Northern France, which is lifting French prices.
- Spain is concerned with the quality of this seasons French wheat, with traders sceptical about its suitability for bread-making. This means alternative sources are being looked at, with Germany a likely benefactor if French wheat is not used.
- Germany is reporting quiet demand from mills and compounders, while demand from other processors is generally steady. Demand for malting barley is rising, which is pushing prices up slightly, while exporters in northern Germany were reported to be actively looking for wheat.
- It should be noted that this Wednesday (01 November) marks the opening of the 2000/01 intervention season, with Germany expected to mainly offer barley.