Problems with the supply of French wheat to China

According to information received from European traders, the loading of several shipments of French wheat that were supposed to be sent to China in December this year has been postponed to March 2024. This led to a decline in grain prices to a two-year low, taking into account the demands of European traders.

In recent months, Chinese importers are believed to have booked around 2-2.5 million tonnes of French wheat for delivery between December 2023 and March 2024, a desired sales target for France, which faces stiff competition from exporters, more cheap. Black Sea grain.

However, export buyers agreed to reschedule some of the cargo scheduled for December. Specifically, between three and seven participants were rescheduled for March. It is expected that wheat supplies from France to China will not stop, but may be less than expected.

It is unclear why importers need to defer shipments, traders said. However, Chinese importers have also booked large quantities of Australian and US wheat due to problems with their own grain harvest. In this regard, some traders expect that in the near future there will be more delays in French deliveries than sales, and that Australian and American wheat is still cheaper.

Also note that against the backdrop of belated sentiment in China for French wheat, grain futures remained cheaper at €213 (-6)/t as of November 27 trading on the Euronext exchange.