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    Home > Food News > Food Articles > Week in focus on European wheat markets: French wheat prices rise

    Week in focus on European wheat markets: French wheat prices rise

    • Last Update: 2022-09-07
    • Source: Internet
    • Author: User
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    French wheat prices for exports
     
    As of Thursday (September 1), the delivery price of first-class French wheat at the French port of Rouen was $333/ton, up $4 from a week earlier
    .
    The price range over the past 52 weeks is $292 to $472 a tonne
    .
     
    On Thursday, the price of second-class wheat in Argentine Shanghe was $400/ton, down $8 from a week ago; the price of No.
    2 hard red winter wheat in the United States was $382/ton, down $5 from a week ago; the price of No.
    2 soft red winter wheat in the United States was 336 US dollars / ton, down 2 US dollars from a week ago
    .
    On the Euronext in Paris, the most actively traded December wheat futures closed at 320 euros/ton on Friday, up 0.
    2% from a week ago; Chicago wheat futures rose 0.
    71% over the same period
    .
     
    Charlie Seinattinger, head of analysis at ED&F Man Capital, said in an Aug.
    31 research report that market rumors that China is still looking for French wheat helps support French wheat prices to remain firm
    .
     
    On Aug.
    30, consultancy Agritel forecast 2022 French soft wheat production at 33.
    63 million tonnes, up from a forecast of 33.
    44 million tonnes a month earlier, but still below the average of the past five years
    .
    French soft wheat exports have been exceptionally fast at the start of the season, with 2.
    5 million tonnes exported in July and August, roughly equivalent to 25% of this year's export potential
    .
    Wheat, which is typically shipped by the end of August, accounts for 14 percent of annual exports
    .
    This may reflect the disruption of Black Sea exports this year due to the Russian-Ukrainian conflict, prompting increased demand for French wheat from overseas buyers
    .
    However, given the relatively small output of French wheat and the gradual acceleration of Ukrainian exports to the Black Sea since August, the export rate of French wheat in the past two months is unsustainable
    .
     
    France is the EU's largest wheat supplier, and Agritel expects France to export 10.
    2 million tonnes of soft wheat outside the EU in 2022/23, down from a forecast of 10.
    95 million tonnes at the end of July
    .
    With relatively low production and brisk exports, French wheat ending stocks at the end of June 2023 are estimated at only 2.
    2 million tonnes, which is a very low level
    .
     
    Russian wheat quotations have been more competitive on the international market over the past week
    .
    Traders said the 105,000 tonnes of wheat that Algeria bought through an Aug.
    30 tender is likely to come from Russia
    .
     
      At the French grain export hub of Rouen, the port exported 175,000 tonnes of wheat in the week to Aug.
    31, down 32 percent from the previous week
    .
     
      FranceAgriMer, the crop office under the French Ministry of Agriculture, said on August 25 that 27% of French soft wheat had a protein content of less than 11% this year, compared with only 5% of soft wheat last year
    .
    The latest harvest results show 31% of soft wheat with 11-11.
    5% protein compared to 33% last week and 23% with 11.
    5-12% protein, unchanged from last week
    .
    19% had protein levels of 12% and above, compared to last week's result of 20%
    .
    About 87% of the soft wheat has a test weight of 76 kg per hectoliter, which is also the widely accepted standard for milling wheat, compared with 85% a week ago and only 31% last year
    .
    In terms of falling value (Hagberg), 96% of wheat readings were above 240 seconds, unchanged from the previous week, and only half were above the mark last year
    .
     
      The monthly report released by the European Commission on August 25 shows that the available production of soft wheat in the EU in 2022/23 (July-June) is 125.
    969 million tons, higher than the previous month's forecast of 123.
    917 million tons, but still lower than the previous year's output.
    130.
    144 million tons
    .
    The EU kept its 2022/23 EU soft wheat export forecast unchanged at 36 million tonnes, up from 29.
    19 million tonnes in 2021/22 (previous month's forecast of 29 million tonnes)
    .
    Ending stocks are expected to be 15.
    72 million tons, up from 13.
    7 million tons expected last month and down from 16.
    62 million tons in the previous year
    .
     
      On August 12, the U.
    S.
    Department of Agriculture lowered the EU's 2022/23 wheat production to 132.
    1 million tons in its supply and demand report, down 2 million tons from the July forecast and 4% lower than the previous year's output
    .
    The wheat harvest has now ended in most EU countries
    .
    Harvest reports show that drought and high temperatures have severely damaged wheat production in Hungary, Spain, Romania and other countries
    .
     
      On August 11, Strategic Grains lowered its forecast for EU soft wheat exports in 2022/23 to 29 million tons, down from the previous month's forecast of 30.
    4 million tons and close to the previous year's level
    .
    Strategic Grains maintained its 2022/23 EU soft wheat production forecast at 123.
    3 million tonnes, down 6.
    5 million from the previous year
    .
    EU corn production for 2022/23 is lowered 10 million tons to 55.
    4 million from last month's forecast of 65.
    4 million
    .
    Lower maize supplies could boost EU wheat feed demand
    .
     
      On August 5, the French Ministry of Agriculture expected the production of French soft wheat in 2022 to be 33.
    9 million tons, higher than the 32.
    9 million tons forecast in July, but still lower than the previous year's production, which was roughly in line with market expectations, because the northern French Production was strong, offsetting the effects of drought in the southern regions
    .
     
      Data from the European Commission shows that as of August 28, the 2022/23 (July-June) wheat export volume of the 27 EU countries was 4.
    86 million tons, compared with 3.
    75 million tons in the previous week and 4.
    88 million tons in the same period last year; imports were 550,000 tons tons, 430,000 tons in the previous week and 340,000 tons in the same period last year
    .
    In 2021/22, the wheat export volume of the 27 EU countries reached 27.
    47 million tons, a year-on-year increase of 6.
    84%; the import volume was 2.
    46 million tons, a year-on-year increase of 21.
    49%
    .
     
      Investment funds and financial institutions held a net long 68,747 contracts in the Euronext milling wheat futures and options market as of Aug.
    26, up slightly from 68,164 contracts a week earlier, Euronext holdings data showed
    .
     
      The euro closed at $1.
    00 on Friday, compared with $1.
    00 a week ago
    .
     
      Note: 1 EUR equals 1.
    00 USD
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