EU wheat exports gather pace in latest week, Romania continues to lead
Wheat exports from the EU continued to gather pace in the latest week of the 2019-20 marketing year (July-June) taking the total for July 1-September 2 to 3.9 million mt, up 20% on the year, the EU Crops Market Observatory data showed.
The EU shipped 397,455 mt of wheat in the week ended September 2 compared with 360,959 mt shipped a week earlier, according to the data released Monday.
Romania remains the bloc’s top exporter, with wheat shipments hitting 1.4 million mt in the marketing year-to-date period.
France, which is the agriculture powerhouse of the EU, and is expected to account for 41% of total EU wheat exports in 2019-20, has been trailing Romania since the new marketing season that began in July.
French total wheat exports reached 765,260 mt in the July 1-September 2 period, according to the European Commission data.
SAUDI ARABIA TOP BUYER
Saudi Arabia has emerged as the top destination for EU wheat, importing 507,921 mt of common wheat between July 1 and September 2, higher than Algeria’s import volumes of 451,161 mt. Algeria traditionally has been the largest buyer of EU wheat.
Saudi Arabia currently has a 14% market share in EU wheat purchases, according to the data.
The EU is expected to export 26.6 million mt of wheat in 2019-20, up 18.% from a year earlier, according to the European Commission forecast.
In the 2018-19 marketing year, total EU wheat exports were at 22.4 million mt.
Last year’s exports also fell short of the US Department of Agriculture estimates of 24 million mt led by stiff competition from Black Sea wheat.
For August, wheat export prices FOB France’s Rouen averaged Eur169/mt, compared with Black Sea’s Eur174/mt, according to International Grains Council data.
The EU recently revised down its yields for the wheat crop due to difficult weather conditions seen in some countries.
Common wheat production in the EU is expected to reach 143 million mt in 2019-20, up 10.4% from a year ago, according to EU Commission forecast.