PARIS, France (Reuters) – The European Union needs to step up imports to fill its huge supply deficit, analysts and traders said Dec. 19.
Europe’s own grain supplies are dwindling after spring droughts and a scorching summer shrivelled harvests. Millions of tonnes of grain will need to be imported by the end of the crop year in June.
Prices in Europe have risen about 50 percent since the season’s start, despite the suspension of export tenders. French wheat is now above $200 US a tonne at port, around $40 above U.S. prices.
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“We are entering a period of rising need by the main importers. Globally the market is very badly covered,” a trader said.
“North Africa is believed to be covered until the end of January, and after that they’ve got nothing,” he said.
According to the EU’s latest figures, the bloc has imported slightly more than two million tonnes of soft wheat this season, and 1.64 million tonnes of corn.
Analyst Strategie Grains said four million tonnes of wheat, including three million from North America, will be needed by the end of the season.
