January 11, 2013

Due to competition from Ukraine and South America, France's corn exports will presently be lower than expected a month ago.

Shipments of French corn are poised to fall to 6.33 million tonnes in the 2012-13 crop year through June, compared with a previous outlook of 6.69 million tonnes.

France is the EU's largest corn producer and exports more than a third of its crop within the 27-nation bloc. Ukraine will deliver about 12 million tonsne of corn in the year through August, according to the country's agriculture minister. The Brazilian port of Paranagua said this month its shipments of corn and soy will climb as much as 14% this year.

Stockpiles of corn were projected by the crop office at 2.77 million tonnes at the end of 2012-13, up from 2.43 million tonnes a year earlier. Inventories were previously forecast to drop to 2.17 million tonnes.

The outlook for soft-wheat exports was lowered to 17.3 million tonnes from 17.4 million tonnes, still above the 16.2 million tonnes of the grain shipped by France in 2011-12, according to the crop office.

Soft-wheat stocks are expected to be 2.29 million tonnes at the end of June, similar to a year earlier and above a December forecast of 1.96 million tonnes.

Relatively warm weather in December and at the start of January helped late-planted wheat to develop in northern France, according to Remi Haquin, president of the cereals council at FranceAgriMer.

Winter wheat develops its primary root system during autumn before dormancy, and a longer growing period may allow for a more vigorous crop in spring.