September 27, 2011
EU wheat prices soften amid Black Sea competition
EU wheat markets continue to weaken due to export competition from the Black Sea region, Toepfer International said Monday (Sep 26).
Toepfer said that EU benchmark wheat prices in Paris fell below the important EUR200 (US$271) a tonne level in September.
"The reason for this is a low import business from grains buyers coupled with a continued high level of competition from the Black Sea region," Toepfer said, adding that Russian and Ukrainian wheat were the main Black Sea rivals to the EU.
It added that the demand for feed wheat is currently supporting prices. The compound feed industry as before does not have particularly good supply cover and the alternatives corn and barley are the same price or more expensive than wheat.
It said that the renewed price fall in recent days has led to more purchasing interest from the compound feed and flour milling industry.
Corn harvesting has started in all EU production regions and good progress is being made in generally dry weather, Toepfer said.
The large corn harvest forecast and expected EU export surplus means EU corn is the most competitively priced in some regions, it said.
The EU crop of spring barley, used for malt and beer production, has poor quality in some countries, it said.
This means EU brewers and malt producers will have to make concessions on quality standards in coming months if supplies are to be adequate, it said.
Toepfer said that in Germany, repeated summer rain which hindered wheat harvesting has disrupted rapeseed sowings but believes that the sowed area for the 2012 rapeseed harvest in Germany will be significantly reduced.