World Bulletin / News Desk
Major wheat exporter Australia does not support a French proposal to create global grain stockpiles aimed at stabilising food prices, but would agree to the measure if it was for humanitarian purposes, the agriculture ministry said on Friday.
Global wheat prices have surged nearly 40 percent since mid-June when the worst drought in 56 years wilted U.S. crops, and dry weather in Australia and the Black Sea region has added to worries about supplies.
France first raised the issue of reserves last year as it chaired the Group of 20 leading economies, and this week, French President Francois Hollande said he was launching a global campaign to win support for the measure amid fears that the world could be on the brink of a third food price panic in four years.
"Australia is cautious about the benefits of food reserves and only supports limited and strategically managed mechanisms that are strictly for emergency humanitarian purposes," said a spokeswoman for Joe Ludwig, Minister for Agriculture, Fisheries and Forestry.
"We do not recommend stockpiling generally as this can have a negative impact on prices and production."
Analysts were also sceptical that many nations will side with the French proposal.
"I personally don't think stockpiles are viable to solving any particular episodes of food price inflation," Luke Mathews, commodities strategist at the Commonwealth Bank of Australia said. "I would be very surprised if Australia implemented stockpiles."
Frankfurt equities sagged despite a rally for shares in German heavy industry giant ThyssenKrupp, which announced a deal with Indian group Tata to merge their steel operations in Europe.
BIST 100 index drops 0.02 pct while US dollar/Turkish lira rate stands over 3.48
The move was seen as a bid to weather US-imposed sanctions on the embattled country.
Regulators decided in May to fine Banco Popolare di Vicenza a total of 11.2 million euros ($13.4 million), the ECB said in a press release.
BIST 100 index rises slightly 0.09 pct while US dollar/Turkish lira rate falls to 3.43
BIST 100 index rises 0.10 pct while US dollar/Turkish lira rate stands around 3.46
Borsa Istanbul's BIST 100 index goes down 0.89 pct at close, USD/TRY rate stands around at 3.44
The International Energy Agency also said production by the OPEC cartel and its allies fell in August and compliance with their pact to cut supply to the markets increased.
BIST 100 index rises 0.11 pct while US dollar/Turkish lira rate stands around 3.40
Loan to be used to increase domestic savings, enhance economic participation, ensure sustainable growth, says Treasury
Demand, government incentives, reforms cited as reasons for better-than-expected GDP growth