June 11, 2020

FranceAgriMer raises further non-EU soft wheat export estimate

On Wednesday, farm office FranceAgriMer raised again its projection for French soft wheat exports outside the EU to a record amount as rapid shipments continued in the latter stages of the season, Reuters reported.

In a monthly supply and demand outlook for cereals, the office raised its estimate of soft wheat exports outside the EU in the 2019/20 season that ends on June 30 to 13.45 million tonnes from 13.3 million seen last month.

That would mark a record volume and be 39% above 2018/19 exports, FranceAgriMer's data showed.

The office has now increased its non-EU export outlook for soft wheat for nine months in a row since giving an initial projection of 11 million tonnes last September.

French exports have been boosted this season by supplies from a bumper 2019 harvest, reduced competition from top wheat exporter Russia, and strong demand from countries like China.

In addition to an ongoing flow of shipments to China, the latest upward revision reflected some late-season cargoes for Yemen and Tunisia, FranceAgriMer said.

The raised non-EU export outlook outweighed a 100,000 tonne cut to expected livestock feed demand and contributed to FranceAgriMer lowering its forecast for soft wheat stocks at the end of 2019/20 to 2.8 million tonnes from 2.9 million.

Domestic milling demand was raised slightly from last month as the easing of a French lockdown to curb a coronavirus epidemic led the office to see a smaller hit to demand than initially thought, it said.

Forecast corn stocks were trimmed to 2.1 million tonnes from 2.2 million tonnes, reflecting increased feed demand.