The EU is in the grip of its market regulations and the firm Euro currency versus the U.S. Dollar, market analysts posted by the end of last month. The minimum price for all EU grains is the intervention price: EUR 101,31 equal US $ 125, basis October, delivered to intervention store. Market prices for malting barley are, of course, higher, analysts said at the end of March. Present offering levels of EU grains of old crop, FOB seaports, are: French feed barley US $ 157,-. We cannot imagine that the EU Commission will grant any export restitutions. Therefore a situation may arise, where EU domestic markets in 2004/05 are weak because of insufficient export outlets or world markets are high enough to absorb EU exports at unsubsidized price levels.

23 April, 2004