Poor quality depresses crop prices
EUROPEAN grain prices were mixed over the week, as quality concerns especially in France remained. Maize is the only crop that is seeing sustained price rises as
old crop supplies become even tighter.
Malting barley prices were reportedly firm across Europe. The harvest of spring malting barley picked up considerably last week. European prices remained
well above intervention prices.
The quality of the French wheat crop proved to be the main market news of the week. Following poor harvest weather, a high proportion of the crop is likely to be downgraded to feed. Although still unclear, at least 20% of the crop could fail to meet intervention quality.
Germany has just started its wheat harvest following delays brought about by the poor weather. Moderate malting barley yields has meant that domestic supply is unlikely to meet German maltsters demand. Cereal planting for harvest 2000 was some 6% above 1999 although less spring crops were sown.
Intervention stores opened on 01 August in southern EU countries which could impact on prices over the coming weeks. If farmers sell into intervention then
prices could see support after the recent price falls.
Spanish grain prices are still depressed as ample supplies weigh on the market. Quality is still the major concern especially with barley. Harvest is expected to be completed by the end of August.
1 = 61.5p, 1 = 1.62494 at time of writing.
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Taken from HGCA weekly MI Bulletin
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