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No SMP Sold as Buyers Seek Intervention Deals

09 January 2017
AHDB

EU - Buyers have been testing the European Commission to see if they can get a good deal on intervention stock.

The Commissions second tender process ended with it not selling any stock. The Commission received bids for just shy of 12k tonnes of the 22k tonnes it was offering for tender.

The highest bid was €1,961/tonne, around €140 lower than the last quoted weekly average EU SMP price, and the Commission rejected all bids.

The first intervention process saw just 40 tonnes sold out of intervention, leaving 350k tonnes of intervention stock virtually untouched.

So far, the Commission has avoided selling stock for less than the market price, but buyers may be wondering whether this will continue going into the third tender.

TheCattleSite News Desk

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