June 8, 2007

Spain's wheat market surges

After months of minimal activity in major grain ports, Spain's wheat market has seen a surge of imports in the last two weeks after seven shipments of feed wheat containing 100,000 tonnes of wheat arrived in the port of Tarragona. The imports came from US, Canada, France, Denmark and Bulgaria, port sources say. 

Three more ships with a combined 20,000 tonnes of UK bread wheat have come in and three large cargoes of corn, and others of sorghum, tapioca and soy meal, he added.

Tarragona, in the middle of the east coast, is Spain's main grain port, followed by Cartagena and Huelva in the southeast and southwest.

The source said the surge was due to a measly 2,000 tonnes that have arrived in Tarragona in the middle of May which worried industry players.

For months, Spanish feed makers have bought only enough raw materials to cover their immediate needs, in the hope high world grain prices would ease, traders say.

Importers and trading companies in turn have been delaying purchases, fearing they could get stuck with stocks when prices fell.

Millers have been buying more grain ahead of time, so the squeeze has not affected bread wheat in the same way.