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    Home > Food News > Food Articles > European wheat market: China buys French low-protein wheat, boosting prices

    European wheat market: China buys French low-protein wheat, boosting prices

    • Last Update: 2022-09-06
    • Source: Internet
    • Author: User
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    French wheat prices in China
     
    As of Thursday (August 25), the delivery price of first-class French wheat at the port of Rouen, France, was $329/ton, up $6 from a week ago
    .
    The price range over the past 52 weeks has been $292 to $
    472 per ton.
     
    The price of second-class wheat on Argentina's Upper River on Thursday was $408/mt, unchanged from a week ago; The price of U.
    S.
    No.
    2 hard red winter wheat is $387/ton, up $24 from a week ago; U.
    S.
    No.
    2 soft red winter wheat is priced at $338/ton, up $
    20 from a week ago.
     
    On Euronext paris, the most actively traded December wheat futures on Friday closed at €316/mt, up 6 euros or 1.
    94% from a week ago; Chicago wheat futures rose 4.
    44 percent
    over the same period.
     
    France sold a large quantity of low-protein French wheat to China this summer, contributing
    to a strong start to French wheat exports in 2022/23 (July-June).
    protein
     
    Traders said Chinese importers bought several shipments of French wheat on Aug.
    20 and 21, marking the second time since July that Chinese buyers have taken advantage of falling prices to book low-protein French wheat
    .
    Some traders estimate that China has bought at least three to four vessels, each about 60,000 tons; There are also some who estimate that six to eight ships have been bought, and the total may be close to 500,000 tons
    .
    The sailing schedule is from October to December, and the protein content is 10%-10.
    5%.
    Although the protein content of 10% is lower than the standard for pollin-made wheat in Europe, the batch of wheat sold over the weekend is considered to be used for milling rather than feed
    .
     
    France AgriMer, a crop office affiliated with the French Ministry of Agriculture, said on Thursday (Aug.
    25) that an almost complete quality report of French soft wheat showed that the protein content was slightly lower than the original sample, significantly lower than last year
    .
    Soft wheat has seen 27 percent of protein levels below 11 percent this year so far, compared with a preliminary result of 24 percent
    released last week by France AgriMer and crop institute Arvalis.
    Last year, only 5 percent of soft wheat had less than 11 percent
    protein.
     
    The latest protein content survey results covered 95 percent of the expected sample in France, up from 76 percent
    when it was first assessed last week.
     
    The latest harvest results show that 31% of soft wheat has protein content of 11-11.
    5%, compared with 33% last week, and 23% of protein content is 11.
    5-12%, which is the same
    as last week.
    19% of the protein content is 12% and above, compared to last week's result of 20%.

     
    The harvest quality report also showed that another key criterion for milled wheat – the bulk weight – was slightly higher than the previous week's data
    .
    About 87% of soft wheat has a bulk weight of 76 kg per hectolitre, which is also a widely accepted standard for milling wheat, compared with 85% a week ago, and only 31%
    of the bulk weight index reached the milling standard last year.
     
    In terms of the drop value (Hagberg), 96 percent of wheat reads above 240 seconds, unchanged from the previous week, compared to just over half last year
    .
     
    The available production of EU soft wheat in the 2022/23 (July-June) eu soft wheat was 125.
    969 million tonnes in the monthly report released by the European Commission on 25 August, up from 1239.
    17 million tonnes forecast last month, but still lower than the previous year's 130.
    144 million tonnes
    .
    The EU maintained its eu soft wheat export expectations for 2022/23 unchanged at 36 million tonnes, up from 29.
    19 million tonnes in 2021/22 (forecast at 29 million tonnes
    last month).
    Ending stocks are expected at 15.
    72 million tonnes, up from 13.
    7 million tonnes expected last month and down from 16.
    62 million mt
    in the previous year.
     
    On August 12, the USDA lowered the EU's 2022/23 wheat production to 132.
    1 million tonnes in its supply and demand report, down 2 million tonnes from its July forecast and 4%
    lower than previous year's production.
    The wheat harvest in most EU countries is now over
    .
    Harvest reports show that drought and high temperatures have severely
    damaged wheat yields in Hungary, Spain, Romania and other countries.
     
    On August 11, Strategic Cereals lowered its EU soft wheat export forecast for 2022/23 to 29 million tonnes, down from the 30.
    4 million tonnes forecast last month and close to the previous year's level
    .
    Strategic Grains maintained eu soft wheat production forecasts at 123.
    3 million tonnes for 2022/23, down 6.
    5 million tonnes
    from the previous year.
    EU maize production was lowered by 10 million tonnes in 2022/23, down to 55.
    4 million tonnes from 65.
    4 million tonnes
    forecast last month.
    Lower maize supply could boost feed demand for
    wheat in the EU.
     
    On August 5, the French Ministry of Agriculture estimated French soft wheat production of 33.
    9 million tons in 2022, up from the 32.
    9 million tons forecast in July, but still lower than the previous year's production, which is roughly in line with market expectations, as strong production in northern France offsets the impact
    of drought in the southern region.
     
    According to the European Commission, as of August 21, 2022/23 (July-June) EU-27 wheat exports were 3.
    75 million tons, compared with 3.
    58 million tons in the previous week and 4.
    01 million tons in the same period last year; Imports were 430,000 tons, compared to 350,000 tons in the previous week and 280,000 tons
    in the same period last year.
    Eu-27 wheat exports reached 27.
    47 million tonnes in 2021/22, up 6.
    84% year-on-year; Imports were 2.
    46 million tons, up 21.
    49%
    year-on-year.
     
    Euronext holdings showed that as of August 19, investment funds and financial institutions held a net long of 68,164 lots in the Euronext milled wheat futures and options market, down from 75,730 lots
    a week ago.
     
    On Friday, the euro closed at 1.
    00 euros a week ago, compared to 1.
    00 euros a week
    ago.
     
    Note: 1 euro equals 1.
    00 USD
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