June 11, 2008

EU to retake net grain exporter position 
  
   

The EU is forecast to retake its position as a global net exporter of wheat and coarse grains as exports rebound and imports drop, the USDA said in its monthly "Grain: World Markets and Trade" report posted Tuesday (June 10, 2008) on the Foreign Agricultural Service Web site.

Exports of wheat, corn, and barley to the Mediterranean region and Middle East are projected higher on larger crops and the expectation that the EU Commission will approve export licenses. The EU's import demand for corn and sorghum is forecast to fall with greater domestic supplies of feed-quality grains. High protein milling wheat and durum imports are expected to remain stable.

Internal market prices in the EU are currently two to three times above the intervention support price. With the absence of intervention stocks, market supplies and prices will be largely dependent on this year's harvests. These factors will influence the Commission's willingness to approve export licenses.