French wheat subsidy
French wheat subsidy
FRENCH wheat received further support last week as Brussels issued export subsidies worth up to k7.50 on 348,000t of free market wheat last week. But the news is unlikely to breathe life into the stale UK market.
The award makes French grain competitive with US soft red winter wheat, re-opening lost markets and helping steady the market across the Channel.
"It has allowed better quality French milling wheats to compete with the crop that was previously coming out of Germany and has opened up new markets in Egypt, Morocco and Iraq," says Dalgetys Trevor Harriman.
"Millers are also able to blend French wheat with other origins, limiting the volumes that the UK can trade."
This, together with a lack of farmer selling, has kept UK prices unchanged to slightly weaker, at about £68-69/t midweek. "While farmers hold out for at least £70/t, the UK is losing competitiveness with France," says Mr Harriman. *