EU: Big barley import tender from Saudi Arabia adding pressure on EU supplies
Strategie Grains on February 15 cut its forecast for the European Union’s soft wheat exports this season, citing poor competitiveness of French and Polish wheat on the world market.
The private analyst firm cut French non-EU exports to 8.5 million tonnes, well below the forecast of 9.0 million given by farming agency FranceAgriMer on February 14. It also put French end of season stocks much higher than the agency.
“It’s not a pretty picture for French farmers,” one futures dealer said. “There’s going to be a huge carry-out (stock) unless the picture alters significantly.”
Weekly EU data confirmed the sluggish pace of overall exports from the bloc. By Feb. 13, EU soft wheat exports were 19 percent below last season’s pace at 12.8 million tonnes.
Exporters have faced stiff competition from cheaper origins like Russian and Argentine wheat, while low international prices have discouraged west European farmers from selling.
Barley was in focus again, with a big import tender from Saudi Arabia adding to pressure on supplies.
“In barley, it’s really difficult to find available merchandise without paying a high price,” one French broker said.
Saudi Arabia is seeking 960,000 tonnes of barley in a tender with a bidding deadline on Friday, February 16.
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