Red Sea attacks unlikely to hit French cereals exports to Asia for now – FranceAgriMer

Attacks on ships in the Red Sea are unlikely for now to affect exports of French cereals to Asia, notably China which is a key market for France, since they are targeted at ships going towards Israel, farm office FranceAgriMer on Wednesday.

The Iran-allied Houthi militia have been attacking commercial ships in the region since November in an escalation of Israel’s war with Palestinian Hamas militants in Gaza.

The Houthis have said that they would target ships heading to Israel and that their actions are a show of support for the Palestinians.

“(Wheat exports) going to China are going to go through the Suez Canal and the Red Sea in the opposite way as the one that is threatened,” Marc Zribi, head of FranceAgriMer’s grain unit, told reporters, after a meeting with representatives of the French grain trade.

“Now, if that zone of the Bab al-Mandab Strait and that part of the Red Sea became a real zone of open conflict in the weeks to come there would certainly be a significant impact but at this stage it’s not the case so we can think that exports out of Europe to Asia should not be impacted too much,” he said.

The Bab al-Mandab Strait is at the southern end of the Red Sea.

Still,shipments data showed some French wheat exports to China that set off in December have been rerouted since the attacks.

Among the 12 wheat cargoes that have left France for China since last month, five travelled through the Suez Canal and Red Sea, while seven chose the longer route around Africa, including two that had turned back in the Mediterranean, LSEG shipping data showed.

FranceAgriMer in a supply and demand outlook slightly lowered its forecast for French soft wheat exports outside the European Union in 2023/24 citing lower demand from China and Black Sea competition in Egypt.
Source: Reuters (Reporting by Sybille de La Hamaide, editing by Gus Trompiz and Jane Merriman)