French soft wheat non-EU export outlook cut

PARIS, FRANCE — A dim outlook for sales to Algeria, one of France’s main export markets, has led FranceAgriMer to cut its forecast for French soft wheat exports outside the European Union for the fourth straight month, Reuters reported Feb. 16.

In its monthly supply and demand outlook for major cereal crops, FranceAgriMer reduced its forecast for soft wheat exports outside the European Union in 2021-22 to 8.9 million tonnes from 9 million in January. Projected exports within the 27-member bloc, however, were increased to 7.8 million tonnes from 7.7 million tonnes last month.

French wheat has been overlooked in Algeria’s tenders this year, according to traders. The trend previously has been linked to diplomatic tensions as well as the attractiveness of other origins such as Russian wheat. The North African country has changed quality specifications in its tenders, which favored the supply of rival Black Sea origin wheat. Algeria’s state grains agency is again tendering this week to buy milling wheat from optional origins.

FranceAgriMer increased its forecast of wheat use in animal feed, reflecting improved competitiveness against maize. The office slightly cut projected wheat stocks at the end of June by 70,000 tonnes, to 3.6 million tonnes, as the increased feed demand and intra-EU exports offset the reduced non-EU exports.

Source: World Grain