EU to restore import duties on cereals as prices fall 50% in 12 months
The duties were scrapped last January in order to ease a tight grain supply, which had driven prices to record highs.
However, EU wheat prices have steadily declined, and are 50% below those of September 2007. Feed wheat in Britain was at the equivalent of €103 per tonne for spot movement last week, and lack of confidence in the financial system was blamed for killing forward demand, with buyers fearing that a global recession will slow demand and content to spot buy when needed from the plentiful supply on the market.
