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German grains trade thin
HAMBURG ,Trading in Germany's grain market remains difficult with mills unwilling to pay the relatively high prices demanded for new crop wheat, traders said on Tuesday.
Drought and frosts have damaged some German grain plantings, especially in the east of the country.
But the picture has been improved in the past few days with rain in much of Germany.
Despite the rain, German prices have had a firmer undertone, receiving support from fears that hot and dry weather in France and some south European countries might reduce the overall EU crop, traders said.
Producers stress Germany's crop may have suffered substantial damage and how alternative supplies might be reduced.
"German mills do not believe this and are simply holding out to see how Germany's crop develops," one trader said. "There has been relatively few new crop purchases compared to past years, some mills have made minimal purchases."
Buyers stress Germany's wheat plantings are developing well and most weather damage has been to barley, rye and rapeseed.
"Mills are this week unwilling to increase the prices they are willing to pay," one trader said. "Germany's wheat harvest does not start until August so they still have a lot of time."
"The mills seem to believe they will get their supplies at better prices later and there will be enough to meet their requirements."
Buyers and sellers were sometimes four to five euros apart in their prices.
MGR Archive 26.6.2003
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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