EU: Barley intervention will be stopped rather early
Barley intervention stocks are only 1.5 million tonnes, purchases and sales since the beginning of the new crop year were almost identical.
The EU Commission has so far restricted the free market refund for barley exports to maximum € 3,- per ton, which gives a FOB price of EU feed barley of US $ 135,- per ton, but it sold intervention barley well below that level, the latest 100.000 tons at US $ 130,-.
By 2013 the EU must drop all export restitutions, but the process of liberalization is expected to start in 2008. Import taxes and intervention will have to be adjusted. There is more and more talk that barley intervention will be stopped rather early, perhaps in 2008.
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