France Poised to Beat U.S. in Wheat Exports After Drought
This article is for subscribers only.
U.S. farmers, the biggest wheat shippers, are poised to lose their advantage over French growers in export markets after the worst Midwest drought in more than a decade wilted grain crops and drove prices to a 10-month high.
Wheat traded in Chicago jumped 18 percent in the past two weeks as Paris grain rose 12 percent. French supply for delivery after the harvest traded at a premium of $2.44 a metric ton to the U.S. in Paris today, from a record $25.27 on May 2. That may flip to a $5 discount in the next several weeks, said Alexandre Marie, a Bourges, France-based analyst at Offre & Demande Agricole, which advises 5,000 farmers on crop sales.