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European wheat market week focus: export demand supports French wheat to continue to rise

 Last Update: 2022-12-29
 Source: Internet
 Author: User

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Foreign media news on November 27: In the 45th week of 2022, French wheat spot prices continued to rise, continuing to be supported by active export demand, especially the United States ordering European wheat, providing additional support
for the market.

As of Thursday (Nov.
24), the delivery price of first-grade French wheat at the French port of Rouen was $343/mt, up $2 from a week ago
.
The price range over the past 52 weeks has ranged from $308 to $
472 per tonne.

Second-grade wheat prices in Argentina's upper river on Thursday were $414/mt, down $5 from a week ago; US No.
2 hard red winter wheat was $415/mt, down $10; U.
S
.
No.
2 soft red winter wheat was down $10 at $350/mt.
On Euronext Paris, the most actively traded March wheat futures closed at 318.
5 euros / mt on Friday, down 0.
8% from a week ago; Chicago wheat futures fell 3.
0%
over the same period.

Despite aggressive Russian wheat export offers in recent weeks, weighing on competitors, including Europe, aggressive purchases by Chinese buyers, coupled with unexpected U.
S.
orders for Polish or German wheat, have helped support firm French wheat prices
, traders said.

Early last week, news broke that Chinese importers had ordered two cartons of French wheat, followed by new deals, bringing the number of wheat ordered by China to several hundred thousand tons
.
There are reports that China has bought 7 to 8 ships of French wheat loaded on Panamax ships in quantities of about 400,000 to 500,000 tons, while several other traders say China may order as many as 10 ships, equivalent to 600,000 to 700,000 tons
.
French wheat sales to China are very large, with most of them scheduled
for shipment in December, European traders said.
There has also been a new wave of sales to Morocco in France, with at least a few ships set to be loaded in December
.

More unusually, there are rumors that the U.
S.
is ordering Polish or German wheat, which is related to
high domestic wheat and transportation prices in the U.
S.
and attractive ocean freight.
U.
S.
flour mills ordered about 100,000 tonnes of Polish wheat last week for shipment to the U.
S.
East Coast, at least $50-75 cheaper per tonne of C&F than U.
S.
hard red winter wheat
.
Polish traders say the Polish wheat could be shipped to Florida, where prices range from $360 to $370 a tonne
.

Despite recent buoyant European wheat exports, the European Commission on Friday lowered EU27 wheat exports for 2022/23 to 34 million mt, down from 36 million
mt forecast a month ago.
This may reflect the extension of the Black Sea export agreement, which contributes to the stability of the
Black Sea export outlook.
In addition, the feed consumption of EU wheat was raised by 1 million tons to 41.
5 million tons; Imports from third countries were raised by 1 million tonnes to 4 million tonnes
.
Ending stocks are expected to reach 15.
46 million mt, up from 13.
7 million mt estimated in October.

France's soft wheat exports to outside the EU are expected to be 10 million mt in 2022/23, slightly down from the 10.
1 million mt forecast last month, FranceAgriMer, France's crop office under the French Ministry of Agriculture said Nov.
10.

Total French soft wheat exports in 2022/23 are expected to be 17.
1 million mt, down from 17.
3 million mt forecast last month.

Wheat ending stocks are expected at 2.
56 million mt, up from 2.
13 million mt
forecast last month.

FranceAgriMer, part of the French Ministry of Agriculture, said on September 22 that the average protein content of French soft wheat this year was 11.
4%, down from the average of 11.
9%
in the previous five years.
Despite the effects of the dry and hot weather in the spring and summer, the wheat quality was generally very satisfactory
, the report said.
About 59% of the crops are of excellent
quality.

The EU27 exported 13.
63 million mt of wheat in 2022/23 (July-June) as of November 20, compared with 13.
35 million mt the previous week and 13.
09 million mt
a year earlier, European Commission data showed.
The top buyer was Algeria (1.
91 million tons, 14.
0%)
.
EU wheat imports so far this year were 3.
04 million mt, compared with 2.
84 million mt the week before and 1.
1 million mt
a year earlier.
Ukraine is the number one supplier (1.
93 million tons, 63.
5%)
.
In 2021/22, the EU27 wheat export volume was 27.
47 million mt, an increase of 6.
8% year-on-year; The import volume was 2.
46 million tons, a year-on-year increase of 21.
5%.

Investment funds and financial institutions held a net long 55,632 contracts in the Euronext milling wheat futures and options market as of Nov.
18, down from 48,054 a week earlier
, Euronext holdings data showed.

On Friday, the euro closed at $1.
0409 to the euro, after a week earlier it was $1.
03435 to the euro
.

Note: 1 euro is equal to 1.
0409 US dollars

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