June 11, 2010

The euro has slid 16% against the US dollar this year, giving French wheat a cost edge over other international exporters like the US.

About nine million tonnes of French soft wheat was loaded for export outside the EU between July and the end of May, 25,000 tonnes more than a year earlier, said Michel Ferret, head of market research at the crops office.

France is shipping wheat to buyers outside the EU at a faster pace than last year after the euro's slump stoked demand for the country's grain. ''We benefit from a competitive advantage due to the plunge of the euro,'' Mr Ferret said.

The crops office maintained its forecast for soft-wheat exports to non-EU destinations of 9.5 million tonnes in the crop year through this month, down from 9.59 million tonnes in the 2008-09 year.

The pace of shipping compares with 4.3 million tonnes loaded at the end of May 2008, Mr Ferret said. Exports outside the EU in the 2007-08 crop year were 4.91 million tonnes.

Soft wheat loaded at the end of May included three million tonnes for Algeria, 1.5 million tonnes for Egypt, 1.2 million tonnes for Morocco and 600,000 tonnes for Yemen.