Posted on November, 14, 2024 at 10:03 am
Traders said that the European Union is increasingly focusing its wheat exports on the west side of Africa, after Russia dominated major markets in North Africa and Middle East.
EU shipments of soft wheat or common wheat are 30 percent below their previous year's level. This is due to a combination of Russian competition and the rain-stricken harvest in France, the top EU producer. EU data show that Nigeria is the current top destination. Algeria, which was previously the leading exporter, is now only in fifth position.
Karolis SIMAS, the president of the Lithuanian Grain Processors and Traders Association, stated that shipments coming from the Baltic States were moving westward.
He told the Global Grain Conference in Geneva that 75% of Baltic States' wheat exports now go to Africa. Nigeria and South Africa have replaced Iran and Saudi Arabia, which had been Russia's top markets.
According to Norbert Stloc, Commercial Head of Grain and Oilseeds, Polish Agro, Poland has seen a similar trend.
He told the conference that, while it used to export around half its products to Saudi Arabia on giant panamax ships, its main market is now West Africa, using smaller vessels.
FranceAgriMer, the farm office in France, has cut its forecasts for French soft wheat sales in 2024/25 by 62% compared to last year. Sales to Algeria are now expected to be down 62% from last year.
France and Germany have adapted in part to the growing wheat trade by Russia in Algeria, by selling more to Morocco.
As part of an export record, Russia has increased its share in the Moroccan market. Morocco is now only the fourth EU destination.
Due to Russia's efforts to reduce exports, and the dwindling supplies in Ukraine, a major Black Sea supplier.
Sztloc stated that exports could pick up in March, as farmers begin to release their stocks. Another 2 million tons are needed following a slow start of the export season.
Source: Marine Link