EU wheat prices fall on Black Sea competition

Published Nov 13, 2024

Tridge summary

European wheat prices have dropped due to intense competition from Russia and Ukraine. The fall is also attributed to a decrease in Chicago wheat futures. The situation is exacerbated by the offer of cheap new crop Argentine wheat to Asian and African markets, and France's exclusion from an Algerian wheat import tender due to diplomatic tensions. FranceAgriMer has reduced its forecast for French wheat exports in 2024/25, expecting a 40% decrease following one of the country's worst harvests in 40 years. European farmers are protesting against the EU-Mercosur free trade deal, fearing it will harm EU agriculture by increasing South American imports.

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Original content

LONDON (Reuters) - European wheat prices fell on Wednesday as continued fierce competition from Russia and Ukraine dimmed the outlook for European Union export sales. Milling wheat on Paris-based Euronext fell 1.5% earlier to 211.00 euros, also dragged down by a drop in Chicago wheat futures. "Russian protein prices of 12.5% are increasingly being quoted below $230 per tonne FOB, and 11.5% below $220, a level at which the western EU cannot realistically compete among major Arab and African importers," a German trader said. Traders also said cheap new crop Argentine wheat was being offered to Asian and African buyers, while diplomatic tensions between Algiers and Paris led to France being excluded from an import tender for Algerian wheat. The FranceAgriMer agricultural office on Wednesday cut its forecast for French wheat exports in 2024/25, with total shipments expected to fall by 40% this season after one of the country’s worst harvests in 40 years. “Diplomatic relations with ...

Source: NoticiasAgricolas