Market reverting higher

December 3rd, 2010 - The stable situation in the grain markets, as seen during the past period, changed dramatically in the past weeks.

Brewers that had been assuming a gradual price decrease, for instance based on the release of some of the EU intervention stocks, as well as the upcoming Australian harvest, had to conclude that this decrease did not materialize. As a result demand came to the market, and with little barley offers available, prices easily traded higher. At the same time, the Euro lost value due to the financial troubles in Ireland, making EU grain prices again very competitive.

Meanwhile, EU grain exports continue at a very high pace. The UK is in the market to buy back its own positions. Also some French cooperatives are rumoured to buy back positions. Are we seeing first signs of an actual shortage?

At the other side of the globe, in Australia, harvesting was halted due to rains. Analists now predict a limited availability in malting barley and increased availability in feed barley.

All together the markets remain very nervous, and negevative news is absorbed badly, resulting in price increases. The EU and the world is in need of good crops next year. With little stocks positions to fall back on, volatility shall be with us, until we have those good crops in hands.

 

News archive

 

 

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

print