The French market agency FranceAgriMer has revised the forecast export of French wheat to markets outside the EU upwards. There is currently quite a lot of demand from outside the EU. Still, the agency expects inventories to remain stable.
Expected French exports outside the EU are now estimated at 7,45 million tonnes by FranceAgriMer. A month earlier this was still 7,27 million tons. Exports outside the EU in 2020/2021 will therefore remain well below the record of 13,57 tonnes in the 2019/2020 season.
Small stock
The expected ending stock for 2020/2021 is estimated at 2,5 million tonnes, the same as last month. The agency expects that slightly less wheat will be used for animal feed. This is compensated by the extra exports. The barley stock has been adjusted downwards by 100.000 tons to 1 million tons. This means that stocks are at a relatively low level. Soft wheat even reaches the lowest level in 7 years.
The French grain market was initially driven by lively Chinese demand, several traders report. The large Australian wheat harvest put a brake on the price of the French in Asia, despite the diplomatic tensions between China and Australia. The more traditional destinations in North Africa are now on the market. Here, European wheat remains a competitor due to the Russian export taxes and the lack of clarity about them.