French wheat is dampening the EU’s forecast for wheat exports for 2016-17 due to very wet and cloudy weather across key areas in May.
Exports from the EU will fall to a four year low due to the reduction in the French crop. The US Department of Agriculture cut their forecast for wheat exports in 2016-17 down to 30.5m tonnes from the 32m tonnes shipped last season and below the bureaux’s forecast of 34.0m tonnes for 16-17.
Frédéric Hénin, Editor in Chief at Terre-net said French wheat is increasingly unable to meet the requirement of importing countries. Adding, that the diversity of resources and supply on global markets are adding to the problems.
“Confronted to this year’s overabundant supply, it is a fact that the quality of exportable wheat is particularly relevant. Currency devaluations, declining oil prices, lower transportation costs and corn prices are reinforcing the straw grain competition with major producers, even with nations that are the furthest from the Mediterranean Basin. Hence France’s difficulties, although it is geographically best situated. The country’s wheat sales to Morocco and Algeria have been halved.
As a result, it is by gaining market shares in Asia––where France was not active until now––that the country can find an outlet for a share of its mid-quality crops. Yet this year, these sales are not adequate to make up for losses suffered in traditional markets.”