December 23, 2010

EU wheat, corn competitive in global markets

EU wheat and corn are competitive on global export markets despite recent hikes in wheat prices, Germany's largest grain trading house, Toepfer International, said.

It noted that Paris wheat prices have risen by about EUR10/tonne (US$13/tonne) since the beginning of December.

"Milling wheat exports from the EU and France can reach non-EU destinations although they are at a higher price level," it said.

Meanwhile, firm US corn prices and the stronger dollar in recent weeks have caused European corn to be more competitive. Individual export sales of corn outside the EU are possible, it said.

In the past weeks, corn has been the cheapest feed grain in several EU countries and continues to be in strong demand from animal feed producers, it said.

Feed wheat prices in Britain, Poland and Denmark have increased this month and their supplies are not competitive for sales elsewhere in the EU, it said.

"In the EU, European feed wheat is currently competing with EU barley and Australian feed wheat," it added. "The compound feed industry, especially in France, The Netherlands and Spain does not have good supply cover for dates after February."

This means continued feed trade at stable prices is expected, it said.