Thursday, February 2, 2023
spot_img
HomeFoodChina eases wheat quality terms for rain-hit French crop

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

China eases wheat quality terms for rain-hit French crop

Chinese buyers have agreed to relax a key quality specification for upcoming shipments of French wheat in response to rain damage in France’s harvest, traders familiar with the matter said.

France, the European Union’s biggest grain producer, has become a significant supplier of wheat to China in the past two years due to fluctuating trade relations between Beijing and other suppliers as well as a Chinese push to replenish grain stocks.

Test weights are a common measure of milling quality, determining how much flour can be extracted from a certain volume of wheat.

Chinese importers will now accept readings of 75 kgs (165 lb) per hectolitre, compared with a 77 kg minimum initially required for these import deals, the traders in Europe and Asia said.

Fellow wheat importers Algeria and Saudi Arabia have also eased test weight requirements in response to weak results in France and other European countries following heavy rain.

Traders had previously reported Chinese purchases of around 1 million tonnes of French wheat from the 2021 harvest, putting France on course for a third season of strong exports to China.

However, rain disruption to the French harvest created uncertainty about completion of the export deals and fuelled swings in European prices last month.

The relaxed quality terms have allowed exporters to start loading French new-crop wheat for China, with two vessels of around 60,000 tonnes each leaving France since late August and further loadings expected this month.

While at least part of the sales of the new crop were thought to be destined for animal feed production, the supplies had been booked according to milling wheat specifications, including a 77 minimum for test weights, according to traders.

It was unclear whether exporters of the French wheat would pay penalties for lower test weights. But traders said Chinese importers were keen to fulfil the deals that were booked before a rally that took global wheat prices to eight-year highs in August.

Chinese importers cancelled a series of animal feed barley shipments from the Black Sea region in recent weeks due to weaker than expected domestic demand and expectations of a large corn crop, traders said earlier this month.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Bahri sees profits soar in 2022

Saudi Arabia’s Bahri has seen its profits soar by over 400% in 2022 following a boom in tanker rates, boosting the shipping giant’s oil...

Euronav Files Second Arbitration Against Frontline

Euronav NV hereby informs its shareholders that on 28 January 2023 it has filed an application request for arbitration on the merits in relation...

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...