EU cereal import duties on hold for another year
(Farmers Guardian) -- THE European Commission has confirmed that import duties on cereals will remain suspended for another year.
This will only be changed in the unlikely event of a big drop in world grain prices.
The Commission has also confirmed that no subsidies will be available to support grain exports. This was agreed by the cereal management committee.
The decision comes as traders in the United States warn that heavy rain in the Mid-West could have a big impact on yields this year.
Meanwhile, the Commission has responded to complaints from the biofuel industry and will begin an investigation into claims that the US is dumping cheap biodiesel.
This is undermining the European industry, and it will be up to the Commission to decide whether measures against these imports would be justified.
Large Changes in Main Crop Areas in the EU in 2008
According to Eurostat estimates and those submitted by the Member States in early June, the area under cereals is expected to increase by 5.7% compared with 2007. This is certainly a response to the very high producer price increases for cereals observed in 2007 and the beginning of 2008, due to an imbalance between supply and demand for cereals worldwide. Durum wheat shows a large increase of 12.6%.
In contrast, the rapeseed area decreases (-3.1%) for the first time since 2003, but by different rates across Member States. There is possibly a partial shift from rapeseed area to cereal area. The area under protein crops, of which peas represents almost half, continue its negative trend (-13.4% for peas area between 2007 and 2008 and -35.5 % over the past five years). The sugar beet area again shows a reduction (-6.8%).
Strategie Grains Ups 08-09 EU-27 Cereal Output 2.2MMT From May Est
Analytical report Strategie Grains has raised its forecast for the 2008-09 European Union cereal harvest Thursday to 291.3 million tons, a 14% rise on the year.
This is up 2.2 million tons from Strategie Grains' May forecast, with higher output projected for corn, soft wheat and barley crops.
However, Strategie Grains warned the outlook still depends greatly on weather in the coming weeks.
E.U. soft wheat output was revised up 700,000 tons to 129 million; barley output up 690,000 tons to 61.8 million; and corn production up 800,000 tons to 58.4 million.
