PARIS: France's farming agency lowered its outlook for soft wheat stocks at the end of the season, pointing to healthy demand from other European Union countries and a slowdown in crop sales by farmers.
In a monthly supply and demand update on Wednesday, FranceAgriMer pegged soft wheat stocks at the end of the 2017/18 season in June at 3.2 million tonnes, down from 3.4 million estimated previously.
Soft wheat exports within the EU were now seen at 8.05 million tonnes, compared with 7.85 million last month, with FranceAgriMer pointing to increased expectations for sales to several EU destinations including drought-hit Spain.
The agency trimmed by about 100,000 tonnes its outlook for the available supply of wheat, as an increase to expected on-farm stocks outweighed an upward revision to harvest production.
The reduced market supply reflected a plunge in crop sales by farmers in August after July's high level, partly seen as reflecting unattractive prices, Olivia Le Lamer, head of FranceAgriMer's grain unit, told reporters.
Projected soft wheat stocks remained relatively high and above the average of the past five seasons, she said.
Soft wheat exports outside the EU in 2017/18 were put at 10.2 million tonnes, double the volume last season when France harvested its worst crop in three decades but unchanged from FranceAgriMer's September outlook.
France continued to face stiff competition from Russia, reducing its prospects, with the exception of traditional market Algeria.
Algeria accounted for 1.2 million tonnes out of 1.9 million tonnes of French soft wheat shipped outside the EU so far this season, far ahead of No. 2 destination Cuba with just 163,000 tonnes.
Demand for French grain within the EU has been bolstered by good harvests in France and weather-affected crops in neighbouring countries.
FranceAgriMer raised its forecast for French maize shipments within the EU to 4.8 million tonnes from 4.2 million last month, with officials citing demand from countries like Spain, the Netherlands and Belgium.
This led FranceAgriMer to cut its outlook for maize ending stocks in 2017/18 to 2.35 million tonnes from 2.5 million.
However, officials cautioned that the maize supply and demand balance was liable to be significantly revised given that the harvest was still in its early stages and with a discrepancy between the government's production forecast and much higher market estimates.
For barley, FranceAgriMer raised its expectations for exports within the EU to 3.3 million tonnes. Along with a cut to available supply from the market, this contributed to a marginal cut to 2017/18 stocks to 997,000 tonnes.
However, projected barley exports outside the EU were reduced by 200,000 tonnes to 3.3 million, despite brisk international demand, given a relatively low export surplus in France, officials said.
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