EU barley — a former heavyweight back in the ring, USDA said in its October Grain Report. After more than a year without export subsidies, the EU Commission decided last week to reinstate targeted subsidies on October 14 for 1 million tonnes to the Middle East and North Africa regions. The timing of the newly announced export regulation could be an attempt to bolster domestic prices and thereby forestall large-scale sales into intervention stocks when they open November first. Although the level of subsidy remains to be seen, subsidized exports could mean heightened competition in these regions. Australia and Canada are both likely to lose some market share there, leaving Ukraine, Russia, and the EU as the main competitors.

15 October, 2004