August 29, 2008

Feed wheat prices in Spain have eased after a recent technical rebound as more Black Sea vessels unloaded.

Feed wheat was quoted at EUR 184-185 euros (US$272.1-273.6) per tonne in Spain's leading grain port Tarragona, up from a low of 180 reached earlier this month.

Feed wheat traded between 180-188 euros in August.

Feed wheat has become the ingredient of choice for animal feed makers as corn prices rose Spain consumes some 12 million tonnes of grain a year.

Spain cannot grow enough grain to meet its needs even with a bumper crop like this year's expected 23.7 million tonnes, and in 2007 had to import about 12 million tonnes.

Port sources estimated that boats from Ukraine, Bulgaria and Romania were unloading 170,000 tonnes of feed wheat in Tarragona, in addition to 140,000 tonnes  already dispatched in August.

Arrivals of 200,000 tonnes were expected in September.