In a tumultuous session the EU Commissionner for Agriculture Mr. Fischler decided to cancel all export tenders of grains, not malt. Exporters can only book 60 days licences with a “dash” instead of “zero”. It means that restitution or export tax valid on day of export would apply. In 1999 the EU countries wanted to abolish the export tax, which move was blocked by France. It is supposed to be used in emergencies. This morning a Commission man told us that they want to discourage or even prevent exports. Now in the trade there are two opinions: a) offer as usual, as an export tax is unlikely or b) offer only with a protection clause for the case of an export tax. In any case this decision may puch down the internal market prices. It is all due to the smaller overall – mainly wheat – crop, to the continuing heat, which could do damage to maize, beet and potatoes, to the open question, what will come out of the Black Sea. It is certainly an overreaction, also caused by the August holidays. No committee meetings on August 21 and 21. By September we will see clearer.

01 August, 2003