Spain Requests Up To 8 Million Tons Of Grain From EU - Reuters

[hatrack]

BRUSSELS - "Spain has requested the transfer of 6-8 million tonnes of grain from European Union intervention stores to help it offset the impact of severe drought this year, an EU source said on Friday. "The drought on top of frosts is continuing to cause damage to Spanish agriculture and livestock in this campaign," Spain's farm minister Elena Espinosa told the European Commission in a letter obtained by Reuters.

"We currently estimate there will be a 50 percent reduction with respect to the average harvest in the cereals sector," it said, adding losses could be even higher for oilseed crops.

The letter requested an estimated 6-8 million tonnes "be placed on the Spanish cereals market from (European) Community intervention". The amount, if granted in full, would be more than half of all the grain currently offered by farmers into EU intervention stores. The latest data from the Commission show offers at around 13 million tonnes of wheat, barley and maize.

In addition, a large portion of the stocks is held in central European countries, many of which are landlocked and have difficulties exporting surpluses to world markets."

EDIT

http://www.planetark.com/dailynewsstory.cfm/newsid/30812/story.htm