EU: Feed and malting barley markets were calm in March, analysts said

Feed and malting barley markets were calm in March, market analysts have recently commented. The EU Commission granted no export refunds, sold a mere 16,000 tonnes from intervention stocks.

Exporters of feed and malting barley booked 105,000 tonnes of export licences without refunds. Disappointment with markets showed in an increased intervention activity, a total of 1.74 million tonnes have been sold resp. offered to the intervention boards during the crop year 2005/06. Barley intervention stocks are manageable and even small when compared to wheat and maize stocks, 7.9 and 6.15 million tonnes respectively.

Large stocks in the new member countries, particularly Hungary, cost a lot of money to move to deficit areas or export points. The situation will not become easier, when Bulgaria and Romania join the EU in 2007 or 2008. A recent "evaluation" study of the EU Commission, which is not published yet, will suggest major changes to the intervention system.

Whether intervention of some grains (barley) is abandoned or intervention points with price guarantees are reduced to a few central places or wheat and coarse grains will not have a common intervention price any more, any changes would certainly mean lower prices. The protectionists in the EU will resist changes of the CAP as much as possible.