March 12, 2008

EU can export remaining 3 million tonnes of excess wheat from 07/08

The EU has about 3 million tonnes of wheat left to export in the remaining four months of the 2007-08 marketing year, which will likely be completed due to tight global supplies, according to a report by analytical group F.O. Licht Tuesday (March 11, 2008).

"There are sound prospects for the EU to keep the recent pace of wheat export sales for the remainder of 2007-08," said the report.

Even as ending stocks in the US, Ukraine, Russia and Australia are low, regions such as South East Asia, the Middle East and Northern Africa still have import needs to fill, said F.O. Licht.

"EU wheat is currently also very competitive on the world market," the report said.

EU wheat sales were slow at the start of the 2007-08 campaign due to high prices. EU trade licenses showed net imports until February. However, the recent pick-up in demand for EU wheat has indicated a small net export levels.

Due to a rise in seedings and assuming average weather this summer, F.O. Licht forecast the 2008-09 EU export surplus at 12 million tonnes.