EU WHEAT TRACKER: Prices up a tad on week despite decline in export pace

Export prices of wheat from the EU saw slight increases over the past week, despite a sharp decline in shipments.

Prices rose, tracking increases in export prices for wheat originating in Russia and Canada, market sources said.

The pace of exports from the EU fell sharply in the week to March 26, with shipments during the week estimated at 208,821 mt, from 529,556 mt in the previous week, data released by the EU Crop Observatory on March 28 showed.

The EU's wheat exports increased significantly as it became a key wheat supplier to Middle East nations replacing Russia and Ukraine after the war began in February 2022, traders said.

Similarly, EU wheat imports fell sharply week on week. During the week to March 26, the EU purchased 84,067 mt, from 165,560 mt the previous week, according to the data.

Overall imports have increased manifold as the union absorbs surplus wheat from Ukraine, faster than usual.

In its February update the EU Commission pegged wheat output in the marketing year 2022-23 (July-June) at 134.1 million mt, down from 138.1 million mt estimated for last year.

Output is forecast to decline due to drier weather and drought conditions during the sowing season.

Here is the key data to watch out for in the EU wheat market this week:

Source: S&P Global Commodity Insights, Directorate-General for Agriculture and Rural Development, EU Commission, Agri-food data portal, EU Commission.

This article is part of EU wheat tracker series from S&P Global Commodity Insights, which is published weekly.