Source: Ukragroconsult (Ukraine)
According to trade and shipping sources, a large shipment of French feed wheat for Thailand is expected soon. Apart from the shipment to Thailand and Vietnam in June, this will be the first shipment of French wheat to Thai buyers since 2016.
A vessel is scheduled to call at the port of Rouen this week to load part of the planned quantity (60,000-70,000 tons), with loading to be completed at the port of La Palis.
A rare shipment of wheat to Thailand will boost sluggish French exports. France, the European Union’s biggest wheat producer, has harvested its lowest crop in 40 years this year after months of heavy rains. Traders said the poor harvest and stiff competition from cheaper Black Sea wheat caused French wheat exports outside the European Union to dry up weeks after robust shipments in July, when companies used up last year’s stocks.
France’s wheat surplus has shrunk, but concerns remain that exports are not growing fast enough to reduce the surplus. Feed wheat markets could be a viable option for exports this season as heavy rains and limited sunshine, which have hurt yields, have also reduced the natural weight of wheat, a key requirement for flour mills.
A second shipment of feed wheat for Thailand could follow in the coming weeks, traders said. However, a major wave of selling is not expected yet as suppliers are likely to have taken advantage of a short window of opportunity in late summer when French prices were competitive before the September surge. French export prospects were also clouded by the exclusion of French wheat and French companies from Algerian tenders last week, apparently a result of diplomatic tensions.