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  • Nov 8th, 2005
  • Comments Off on German grain offers reach 704,000 tonnes
A total of 704,000 tonnes of German grain has been offered into intervention since the new European Union purchasing season started on November 1, officials at German agricultural agency BLE said on Monday.

Some 347,000 tonnes of wheat and 357,000 tonnes of barley had been offered into intervention up to Friday night.

Weekend offers had not yet been calculated, but it appeared that the first rush of offers placed after the season start was easing.

"We received almost nothing over the weekend so I do not expect the total to change significantly," one German official said.

German commercial market prices are already around intervention levels largely because of poor exports. Germany harvested 23.5 million tonnes of wheat this year. But mills consume only around seven million tonnes annually so the country needs huge exports to remove its surplus.

Traders expect farmers with low quality wheat which still meets intervention standards to offer more into intervention in coming weeks as low quality wheat is currently often quoted below intervention prices.

Large volumes of early season offers had also been expected from German farms and co-operatives which also operate intervention stores. When they sell grain in their own storage silos to the EU, the grain does not move and the EU then pays them for storing it.

Whether more barley is offered would largely depend on how aggressively the EU subsidises exports at its regular subsidy meetings on Thursday, traders said.

Last season, German farmers sold 4.6 million tonnes of grain into intervention including 3.1 million tonnes of wheat.

Copyright Reuters, 2005


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