Proposal to double tender frequency in bid to tackle SMP Intervention Mountain

Published 27 June 18

Demand remained strong for SMP intervention stocks at the most recent tender, with over 25k tonnes sold at the minimum price of €1,195/tonne. At the 19 June tender, bids for 39,836 tonnes were submitted, of which 23,532 tonnes were sold. A lack of available stocks in some Member States meant bids for roughly 340 tonnes could not be translated into sales.

In the most recent tender, 59% of the bids submitted translated into sales, the highest proportion seen this year (see below). This may be due to the fact that buyers have a clearer idea of price levels acceptable by the Commission. As such, the range of the offered prices in the June tender nearly halved compared to the previous tender, tightening from €780/tonne to €400/tonne. 

 

EU SMP intervention stocks

Although some bids could not be converted to sales, the Commission have not released any additional stocks for sale at the 17 July tender, leaving 121,315 tonnes available. They have however, on the back of stronger interest from buyers, proposed doubling the frequency of monthly tenders.

If the proposal goes ahead, tenders will be bi-monthly from October onwards. Member state will meet to discuss the proposal on Thursday 5 July.