Million tonnes of grains for EU-intervention
In the first week that the grain intervention scheme in the EU has been open, almost one million tonne of grains have been offered to be withdrawn from the market.
Countries where grain prices are below the intervention price level are most interested in the marketing tool.
From 2 to 8 November 95,834 tonnes of wheat and 852,981 tonnes of barley was offered for intervention. Germany and France have offered a large amount of barley, 276,089 and 159,170 tonnes respectively.
Interest for the sale of barley to the intervention bureau is higher, because in many countries barley prices are below the intervention price of €101.77 per tonne.
It is expected that with current price levels this season between 4 to 6 million tonnes of grains will be offered for intervention. The season ends on 30 June 2010.
The intervention tool for barley is used for the last year. As of November 2010 the European Commission will buy any barley anymore as a result of liberating the market. From then on wheat still can be offered for intervention under specific conditions.
Intervention support prices (at the Intervention Board buys grain to support market prices) are set by the European Union in advance of the crop year.
In theory, when market prices fall below the intervention level, offering grain for intervention becomes the best sale option and the market is supported at the intervention price.
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