European wheat prices hit fresh contract lows Wednesday after Algeria’s state buyer OAIC snubbed French wheat in a major tender, compounding export woes for what was once France’s top market. A rallying euro added pressure, eroding the competitiveness of EU grain.
- Paris-based Euronext May milling wheat (BL2K5) fell 0.6% to €209/metric ton, barely above its intraday low of €208.75.
- The euro surged 0.8% against the dollar, exacerbating pricing challenges for EU exporters.
Algeria’s Tender Shifts to Black Sea Dominance
Algeria purchased 570,000–600,000 metric tons of milling wheat, with traders confirming shipments likely from Ukraine, Romania, and Bulgaria—not France.
“French wheat’s absence is a clear negative,” said one trader. “With the euro rising, EU grain loses even more ground to cheaper Black Sea supplies.”
Russian 11.5% protein wheat held at 242–244/tonFOB∗∗,whileFrenchandRomanianwheattraded∗∗242–244/tonFOB∗∗,whileFrenchandRomanianwheattraded∗∗2 cheaper—still unable to compete due to political tensions between Paris and Algiers.
France’s Export Crisis Deepens
FranceAgriMer slashed its non-EU wheat export forecast by 70% year-on-year, blaming lost demand from Algeria and China. The revision reflects a dismal season for France’s rain-damaged crop.
Germany’s Silver Lining: Dry Weather Aids Corn Planting
While much of Germany welcomed rain after a dry March, key northern grain regions missed out. However, the dry spell allowed early corn sowing, boosting yield potential.
“Firm fields let tractors plant corn earlier than usual—critical for maximizing growth,” a German trader noted.
Outlook:
- EU wheat faces sustained pressure from Black Sea competition and a strong euro.
- France’s export struggles may persist unless diplomatic or pricing shifts occur.
- Corn planting progress in Germany could offset some grain market pessimism.