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EU Limits Exports Despite Stockbuilding
European Union coarse grain export licenses are down to half the level of a year ago, while intervention stocks have surged four-fold. Wheat export licenses are down 25 percent to their second-lowest level in a decade and the 1997/98 campaign is virtually over. By limiting export licenses, the EU Commission has helped push wheat prices below support levels, which should result in intervention stocks rebuilding for the first time in 5 years, perhaps by 3 - 5 million tons. A buildup in grain stocks strengthens the case for additional CAP reform and also helps the Commission regain a strategic tool for influencing domestic market prices.
For more information on this topic, see the wheat or coarse grains sections of this circular.
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