Source: APKinform (Ukraine)
France this season is exporting the smallest volume of wheat in the last 10 years, as the reduction in domestic production of the grain has reduced supply and together with the lull in demand from Algeria and China are accelerating the loss of market share in favor of cheaper offers, in particular Russia, Reuters reports.
France has sent only one shipment of wheat to Algeria and none to China since the start of MY 2024/25, as specified. Senalia, which operates France’s largest grain export terminal in Rouen, reported about the forced dismissal of part of the staff due to low loading program.
In addition, the decline in wheat exports is another setback for French farmers as they are selling less grain this year, producers are failing to achieve higher prices, while big harvests in other countries are supporting prices on the world market.
According to the national statistics office, low exports could also be an obstacle for the French economy after last year’s also low harvest reduced growth by 0.2 points.
As a reminder, FranceAgriMer analysts forecast soft wheat exports from France outside the EU in the 2024/25 season at 3.5 million tons, the lowest volume in the last century. However, some market operators suggest exports will barely reach 3 million tons. In addition, within the EU, cheaper Ukrainian wheat has overtaken French wheat in markets such as Spain.
At the same time, export demand could change quickly and sales from France could still achieve the expected FranceAgriMer figure as Russian and Ukrainian wheat supplies slow down and Morocco will have to buy more grain.