HAMBURG, Germany (Reuters) — Top western European Union wheat exporters face an uphill struggle to win sales against cheaper rivals in the Baltics and Black Sea regions, traders report.
“The Baltic states of Lithuania and Latvia had good harvests this summer and have large export supplies which are being offered very cheaply in export markets,” one German trader said.
“Russia, Ukraine and Kazakhstan are together expected to export about three million tonnes more than they did last season after decent harvests this year. I think this will be taken off the EU’s export total.”
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The EU’s largest exporter France is being challenged by the Baltic region in its traditional markets such as Algeria.
“For the moment, from July to September, it’s Black Sea countries (dominating export sales), then Baltic wheat from mid-September through November,” one French trader said. “We are at the back of the pack.”
But the drop in Paris prices last week could help struggling French sales with aggressive French offers made in a wheat tender from Egypt.
The second largest exporter, Germany, is also suffering from Baltic competition.