Egypt: Ever Art crosses Suez Canal on its first voyage    IFC loans Egypt's El Sewedy $150 million for more access to renewable energy in Africa    Gold prices in Egypt on June 29    Saudi citizens could enter Schengen countries visa-free    Egypt's Petrojet returns to Libyan oil sector after 11 years    Cemex, VeryNile sign deal for Egypt's Nile River    NATO remarks Egypt's role in maintaining stability in Middle East and Africa    Congo needs Egypt's expertise to diversify its economy – FPI official    Dostarlimab drug cures rectal cancer patient 100%, trials show    Egypt: A royal train turns into a new tourism attraction    Conclusions and Recommendations of the 1st edition of Africa Health ExCon    For the first time John Legend to perform in Egypt    Egypt discovers newly treasure trove of ancient artifacts at Saqqara Necropolis    Noura Al-Mutair – first Gulf female boxer in World Championships    Liverpool fans: "You'll Never Walk Alone" to Cristiano Ronaldo    Egypt to play key role in integrating water, climate issues globally – World Bank official    Egypt's telecoms regulator announces working hours for holy month of Ramadan    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Egypt's trade with Nile basin countries climbs 26% y-o-y in 9 months    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Euro, price dip help EU wheat
Published in The Egyptian Gazette on 26 - 01 - 2010

PARIS (Reuters) - Lacklustre European wheat exports have found some relief in a fall in both the euro and grain prices but this is unlikely to be enough to wrest business from Black Sea competitors or rein in swelling stocks, traders said.
A pullback in global grain markets, prompted by abundant global supplies plus investor jitters caused by US President Barack Obama's plans to curb risk taking by banks, has lured several buyers into the market since the start of the new year.
The drop in the euro, which hit a six-month trough against the dollar last week at $1.4028, has given a potential edge to European wheat shipments, especially versus relatively expensive US grain.
The volume of weekly export licences issued by the European Union for soft wheat has accelerated this month, even if they are still far behind last year's record levels.
"The fall in the euro is a good thing but this benefit still needs to be turned into new deals," one French trader said.
Among the current spate of tenders, European traders were most optimistic about securing business with Saudi Arabia, which bought 440,000 tonnes of wheat of non-disclosed origin.
"I think the weaker euro will make EU wheat more competitive in tenders which involve higher quality demands," a German trader said, citing buyers like Saudi Arabia.
Despite a sharp fall this month, benchmark wheat prices in Chicago remain uncompetitive in major export markets, especially given higher costs for shipping from North America.
However, gains for European exports could be modest as Black Sea origins are expected to keep up their brisk shipments, reinforced by the emergence of Kazakhstan as a major supplier, plus a series of export sales by Turkey.
In its latest tender on January 13, Egyptian state buyer General Authority for Supply Commodities(GASC) bought 180,000 tonnes of Russian and Kazakh wheat, while privately owned Egyptian importer Venus International said it planned to buy about one million tonnes of Kazakh wheat in the year starting in March.
Although the last GASC tender showed French wheat was competitive when offered for loading at two ports, GASC's continued application of a one-port rule -- despite lobbying by French traders and officials -- was hampering French sales.
"It looks like GASC has decided not to change its rules," another French trader said, citing the absence of concessions by GASC after a visit to France. "This could turn into a pretty big handicap for French wheat."
European exporters could get some breathing space from winter logistical snags in the Black Sea. But competition from the region should resume quickly and may be exacerbated by US shipments as the country tries to revive its sluggish exports.
"We can expect an end to the campaign with even more competition from the Black Sea and elsewhere," the trader said. "There won't be enough room for everyone."
Latest projections from leading forecasters have underlined the context of a glut of supplies competing for demand outlets.
The US Department of Agriculture hiked its estimate for global wheat ending stocks by nearly fivemillion tonnes to 195.6 million, while the International Grains Council forecast the third-largest wheat crop on record this year, despite a sharp fall in US sowings.
Without a further slide in the euro or a major weather event to stoke demand, European wheat exports are thus likely only to make a small dent in the mounting surplus that has built up following two successive bumper harvests, traders said.
In its latest monthly forecast, the farm office in France, the EU's biggest producer and exporter of wheat, upped its stocks outlook by 500,000 tonnes to four million.
"Either we carry over stocks to the next campaign, or we offer supplies to intervention," the second French trader said, citing the possibility of rare offers of wheat to public stores in France under the EU's minimum-price scheme.

Clic here to read the story from its source.