French Wheat Exports Plummet to Lowest in Decades

French Wheat Export Outlook for 2024/25

FranceAgriMer recently released its forecast for soft wheat exports from France, indicating a challenging scenario for the upcoming 2024/25 season. The country anticipates exports outside the European Union to remain stagnant at 3.5 million metric tons. This reflects a staggering 66% decrease compared to the previous season, marking the lowest levels of exports since records began in the 1996/97 season.

Factors Contributing to Low Export Numbers

The significant decline in exports can be attributed primarily to reduced demand from key markets such as Algeria and China. Over the years, these nations have been vital for French wheat sales, and their current reluctance to purchase is a substantial blow. Furthermore, an inadequate harvest in France, combined with competition from lower-priced Black Sea wheat, has exacerbated the situation, culminating in this historic drop.

Adjustments in Domestic Wheat Supply

Minor alterations to the outlook have been noted regarding France's soft wheat shipments within the EU. The revised projections indicate a slight decrease to 6.14 million tons, down from the previously forecasted 6.16 million tons. This revision signifies a 2.5% reduction from the previous season’s volumes, illustrating the overall downturn in wheat logistics.

Future Stock Predictions

Looking ahead, FranceAgriMer estimates that soft wheat stocks at the season's end will rise slightly to 2.90 million tons. This figure, while an increase from the previous forecast of 2.87 million tons, is still 9.1% lower than last year's stocks, further emphasizing the strain in the market.

Barley Exports and Stocks Insights

In terms of barley exports, France is witnessing a significant cut in its forecast for the 2024/25 season, with figures dropping to 1.9 million tons from an earlier 2.1 million. This represents a 50% decline from the previous year, driven largely by slumping demand from China. As a result, barley stocks are now projected to reach 1.61 million tons, which reflects a commendable 25% increase over the previous season, reaching a peak not seen in 16 years.

Impact on Maize and Durum Wheat

Meanwhile, maize stocks have also seen an increase, rising to 2.80 million tons from 2.68 million. This resurgence maintains a ten-year record high, resulting from diminished intra-EU exports and a drop in domestic feed requirements. On another note, the durum wheat forecast has faced a downturn as well, with expected stocks reduced to 106,000 tons from the earlier 143,000 tons due to quality concerns impacting the French harvest.

Conclusion

The outlook for French agricultural exports presents various challenges as global market dynamics continue to shift. The reliance on key markets, alongside the effects of a poor harvest, illustrates the fragility of the wheat export sector. As domestic stocks adjust in response to market pressures, both farmers and exporters must navigate these evolving circumstances carefully. The coming months will be crucial for assessing recovery strategies and potential adjustments in future harvests, particularly as France looks to stabilize its place in the global wheat market.

Frequently Asked Questions

What is the current forecast for French soft wheat exports?

The forecast remains at 3.5 million metric tons for 2024/25, marking a historic low.

Why are exports expected to decline?

Key factors include reduced demand from Algeria and China, and competition from cheaper Black Sea supplies.

How do current barley export predictions compare to prior seasons?

Barley exports have been significantly reduced to 1.9 million tons, a decrease of 50% from the previous season.

What are the estimated stocks for maize?

Maize stocks are projected to reach 2.80 million tons, reflecting a ten-year high due to reductions in exports and feed demand.

How has durum wheat been affected?

The forecast for durum wheat stocks has decreased from 143,000 tons to 106,000 tons due to quality issues during the harvest.

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