November 18, 2009

EU grain intervention gets one million tonnes in first week

The EU grain intervention scheme has received nearly one million tonnes of grain offerings in its first week.

Countries where grain prices are below the intervention price level are most interested in the marketing tool.

From November 2-8, about 95,834 tonnes of wheat and 852,981 tonnes of barley were offered for intervention. Germany and France offered 276,089 tonnes and 159,170 tonnes of barley, respectively.

Interest for barley intervention was high, because the barley prices in many countries are below the intervention price of EUR101.77 (US$151.3) per tonne.

With current price levels, about four to six million tonnes of grain are expected to be offered for intervention. The season ends at June 30, 2010. 

As of November 2010, the European Commission will buy any barley as a result of market liberation. Wheat can still be offered for intervention under specific conditions.