EU wheat shipments are tailing off, as the small and low
quality harvest starts to reduce availability of wheat for exports.
Cumulative EU common wheat exports as of December 20 stand
at 11.90m tonnes, down 0.2% year on year, the first time the pace of cumulative
exports has fallen behind last year's pace.
Wet and overcast weather, particularly in top grower France,
hit the wheat crop this year.
As well as reducing the size of the crop, the conditions left
a large number of undersized grains, below specification for many key
But despite these problems, the pace of exports has held up,
"With adverse weather earlier in the year hitting output in
key producing countries such as France, exports of wheat this season are expected
to be down year on year," said Millie Askew, at ADHB.
"However, during the first three months of the season we saw
EU common wheat exports saw above the previous two seasons."
"Nonetheless, it would appear that the pace of exports has
been steadying off somewhat since mid-October."
Pace of exports
reflects tight markets
And Ms Askew pointed out the since the start of the season, about
half of the EU Commission's forecast of 24m tonnes for this market year has already
"At the start of the season, the pace of EU common wheat
exports wasn't really reflecting the tight supply and demand situation we find
ourselves in this season," Ms Askey said.
"However, with exports to date now below last season's
level, it would appear that the pace is now starting to reflect the tighter
supply situation the EU is in."