30.
09.20
09:39

France looking for new wheat customers

Russia's imminent entry into Algeria's large wheat import market may mean little additional competition this season. But France and other suppliers to the European Union face a major threat from next season, traders and analysts expect.
The Algerian state grain agency OAIC has put into circulation changed tender conditions that loosen the limit for insect damage in protein-rich milling wheat and thus remove the bar from cheaper origins on the Black Sea such as Russian wheat.
The current high prices in Russia, which already dominate the market in North Africa's other large wheat importer Egypt, limit the immediate impact on Algeria.
France has long feared Russian wheat deliveries, which could also lower Algiers' high import costs. France delivers around five million tonnes of wheat per season to its main buyer Algeria, or around 40% of its exports outside the EU.
Russian prices have risen in recent weeks due to brisk exports and farmers' reluctance to sell, while the government has reiterated several times that it will consider an export cap.
Not much will change for this season, but what is certain is that French wheat will not be able to get away with its origins in the Black Sea with a large price range in the future. International firms could use this season as a test run to offer limited quantities of Russian and Ukrainian wheat before adding volume in the next season, provided they are also supported by Russian companies that have been invited to register with the OAIC, traders and said Analysts.
France is already seeing a drop in sales to Algeria this season due to a smaller harvest and will not be delivering any wheat there this month. That is extraordinary and makes way for wheat deliveries from the Baltic Sea region.
French exporters hope that with a decent harvest, France can keep a 60% market share in Algeria against competition on the Black Sea.But that would still be a decrease of 90% compared to the years when 1-2 million tons were delivered.
Other French traders are seeing hopeful signs of a rebound in French sales to West Africa and more shipments to China, which could result in Asian buyers overtaking Algeria as the top French wheat destination this season.
So France is already looking for other sales regions for its wheat for the next season.

Source
Hansa Terminhandel GmbH
Rückrufservice
Please describe your request so that we can prepare for the callback.
Yes, I have read the Privacy Policy note and I consent that the data provided by me, including the contact data, for the processing of the inquiry and in case of questions are electronically collected and stored. My data will only be used strictly for my request and will not be passed without my consent. This consent can be revoked any time with effect for the future.'
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Register now

Jetzt registrieren und ZMP Live+ 14 Tage kostenlos testen!
  • Dauerhaft kostenfrei
  • Keine Zahlungsinformationen erforderlich