EU wheat exports pick up on week, but overall lag persists

EU wheat exports picked up in the week to November 8 as 334,903 mt left the bloc, data from the European Commission showed Thursday.

Despite the uptick in weekly exports, overall figures for the marketing year remain disappointing when compared to the recent past. Soft wheat exports from across the bloc stand at 7.009 million mt, down 25% on the 2016/17 marketing year and 7% lower than 2015/16.

After a week off the top spot, France reclaimed its title from Romania as the EU's biggest wheat exporter. Selling 144,802 mt last week, France has now sold 2.119 million mt of wheat since July 1.

Algeria has been the primary destination for EU's wheat in the marketing year to date, taking 1.569 million mt. Saudi Arabia has purchased 914,071 mt and Egypt 805,880 mt.

Currency is one factor which has held back EU wheat exports in the 2017/18 marketing year. While the euro’s strength against the dollar has started to wane in recent months, it remains a long way off lows touched at the end of 2016.

Competition is also stronger this year, with neighbouring Russia recording its biggest wheat harvest on record. With a higher specification wheat generally available at a lower price than EU producers can offer, Russian exports have surged ahead this year.

Russian 12.5% protein wheat was offered Friday at $193/mt FOB Novorossiysk for December shipment, while a French 11% protein milling wheat was estimated to be around $192/mt FOB Rouen.