PARIS, France (Reuters) — Wheat exporters in western Europe are struggling to shift a big harvest and may have to bide their time until buyers have scooped up cheaper eastern European supplies, traders and analysts said.
The European Union’s two largest wheat exporters, France and Germany, are used to being outpaced by Black Sea countries such as Russia in the opening months of the July-June marketing year. Export competition in 2015-16, however, has been exacerbated by shipments from the Baltic states.
Stiff competition overseas could undermine the benefit of a good quality harvest in France and leave it with smaller exports than last season, when it had a lower quality crop but compensated with feed wheat sales to Asia.
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“The volume being shipped from France is not that bad. The problem is we had a record harvest and exports are not enough to balance supply,” Alexandre Boy of consultancy Agritel said.
French wheat exports outside the EU in July and August ran ahead of the year-earlier pace, helped by rapid harvesting. But traders say activity has slowed and could stay sluggish.
“What’s worrying is not the fact we’re running behind as of today but the shortfall in sales we’ve accumulated up to the turn of the year,” a French trader said.
