Dramatic market change

May 25th, 2011 - During the month of May, Western Europe continued to suffer from very dry weather conditions. Areas worst affected are France and East U.K. and crop losses are now a fact.

The weakish economical indicators, which in principle favoured a stabilising market trend, were fully overruled by these events with malting barley prices exploding higher.

The upward move gained particularly momentum once French cooperatives came on the market to buy back positions, which is unprecedented to see before the harvest.

As a result malting barley prices traded above the top of season 2007/2008 during end of last week.

Meanwhile, the adverse weather conditions have resulted in damage to other grains as well. This could imply that these grains will be triggered higher as well.

In view of the current developments in Western Europe, good crops in Eastern Europe, Russia and Ukraine shall be badly needed, as well as a lift of the export ban for Russia and Ukraine.

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The above information is for general purposes only. Any reliance you place on the given information is therefore strictly at your own risk.

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