Farm office FranceAgriMer on Wednesday increased its forecast of French soft wheat exports for a second month in a row, adding to expectations that France is benefitting from a big harvest and reduced Russian competition to gain market share overseas.
In monthly supply and demand estimates for major cereals, FranceAgriMer pegged French soft wheat shipments outside the European Union this season at 12.0 million tonnes, up from 11.7 million projected last month and a new four-year high. The revised 2019/20 wheat export forecast was up 24% compared with last season's level. FranceAgriMer had already increased its estimate last month from an initial outlook of 11 million tonnes in September.
FranceAgriMer's export outlook remained conservative compared with some market participants who expect up to 13 million tonnes of French soft wheat shipments outside the EU, Marc Zribi, head of the office's grain unit, told reporters.
Competitive French prices, coupled with unusually high prices in top wheat exporter Russia, have boosted export sentiment and led to several sales of French wheat to Egypt.
A run of French wheat exports to China has fuelled optimism about this season, Marion Duval, deputy head of FranceAgriMer's grain unit, said, adding traders remained confident that demand from top French wheat buyer Algeria would recover after the North African country skipped purchases for October.
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