France to supply a large shipment of wheat to Thailand

A large shipment of French feed wheat is expected to be loaded soon for delivery to Thailand, according to trade and shipping sources. Apart from the shipment to Thailand and Vietnam in June, this will be the first delivery of French wheat to Thai buyers since 2016.

A ship is due to call at the port of Rouen this week to load part of the planned volume (60-70,000 tons), and the loading will be completed at the port of La Palis.

A rare wheat shipment to Thailand will spur sluggish French exports. France, the European Union’s biggest wheat producer, has had its lowest harvest in 40 years this year after months of heavy rains. Traders say the poor harvest and stiff competition from cheaper Black Sea wheat have caused French wheat exports outside the European Union to dry up weeks after robust shipments in July, when companies used last year’s stocks.

While France’s wheat surplus has shrunk, concerns remain that the pace of exports is not fast enough to repay it. Feed wheat markets could be a viable option for exports this season, given that heavy rains and limited sunshine, which have hurt yields, have also reduced wheat’s natural weight, a key requirement of flour millers.

A second shipment of feed wheat for Thailand could follow in the coming weeks, traders said. But a larger wave of sales is not yet expected as suppliers are believed to have taken advantage of a short window in late summer when French prices were competitive ahead of the September surge. French export prospects have also been clouded by the exclusion of French wheat and companies from Algerian tenders last week, apparently a consequence of diplomatic tensions.

Tags: tender, France, wheat