March 18, 2008

EU runs out of grain intervention stocks

The EU reported that it has no grain intervention stocks left, only 257,000 tonnes of corn which is expected to be drained soon.

The European Commission said that the remaining corn will be gone before July 1, 2008 as there is almost no grain available in the US, one of the countries which often buy grains from the EU, causing the current scarcity.

A spokesperson from the Dutch Product Board for Agriculture said it is uncommon that the EU has no intervention stocks left.

The last time that the EU had no grains left was in 2003.

The Commission has no tools left to influence the grain market via sales from the intervention stocks.

However, the Commission confirmed that that the prices for grains will increase.