France increases wheat exports amid growing competition from the Black Sea region

Increased export shipments from France supported wheat prices on Euronext, while rising supplies of Russian and Ukrainian grain on the international market limited further gains. Reuters reported this.

Export shipments have picked up at the French port of Dunkirk. According to LSEG data, one vessel is due to load about 65 thsd tons of wheat for Egypt, while two other vessels are set to load a combined 100 thsd tons for Yemen. These shipments supported nearby Euronext futures.

On Monday, November 2, the December milling wheat contract on Euronext rose 0.1% to €228.25/ton. This marked a third consecutive daily gain after prices fell to a 3.5-month low of €223/ton last Wednesday. Deferred contracts, however, traded slightly lower. A stronger euro against the dollar limited gains in Paris.

Meanwhile, rising exports from Russia and Ukraine are intensifying competition in international markets. Analysts estimated Russian wheat exports at around 3 mln tons in October. Russian exporters are increasingly offering grain for shipment through Baltic ports, while Ukrainian wheat is reaching export markets via Romania.

According to a German trader, increasing supplies of Russian and Ukrainian wheat are limiting further price gains despite disruptions to Black Sea shipping. On November 2 alone, more than 120 thsd tons of Russian wheat with 12.5% protein were offered for export through Baltic ports at $258–261/ton FOB, about $5/ton below west EU wheat and $10/ton below Romanian wheat. The market is also watching for signs of a possible resolution to the war situation in the Black Sea, which could affect trade flows.

Tags: EU, prices, France, Black Sea region, wheat, export