Feed barley price levels in February dropped from their highs in December/January, analysts reported on March 1. Reasons were first of all a good cover of the feed compound industry until April, but also the lack of exports and sales of intervention wheat, rye and barley to domestic markets. Barley intervention stocks are 82,000 tonnes, most of them in less favourable locations. Exports are out of the question, even present offering levels of US$ 170 FOB Rouen are still US$ 30 per ton above world markets. Right now it is the combination of high domestic EU prices after a bad crop and a firm Euro versus the U.S. Dollar, but one must wonder whether the firm Euro alone will not hinder grain (and malt) exports, when grain supplies are more ample again in the coming year(s).

12 March, 2004