Covid-19 disrupts grain trade
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By: Claire Fages Follow
Less consumption of wheat in Europe, but more exports to Africa for human consumption. More consumption of corn on farms. The coronavirus epidemic has changed the habits and trade of grains.
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The Covid-19 has slowed the activity of bakeries and biscuits, artisanal or industrial, in Europe, since the implementation of containment. But European and particularly French soft wheat is exported like never before, + 60% compared to the previous campaign, reports FranceAgrimer.
More wheat purchases in North Africa
The major importing countries on the southern shore of the Mediterranean are making precautionary purchases in these times of coronavirus. Algeria is expected to order an additional 1 million tonnes, Morocco facing drought, extends the suspension of its customs duties until December. Egypt is expected to buy 13 million tonnes. China, even, enters the top 5 destinations for European wheat, which is helped by the fall of the euro, the low cost of sea freight, and the end of quotas for wheat from the Black Sea. Sustained demand that rebounded wheat prices, when they first fell at the start of containment.
Depressed corn like oil, a rarity of rapeseed meal
The Covid, on the other hand, depressed the prices of corn, linked to those of petroleum, via ethanol, whose consumption collapsed at the same time as those of fuels, in particular in the United States, because of the great blow of brake in transport. Corn is therefore at the moment a much less expensive ingredient than wheat for animal feed and European manufacturers are also referring to this cereal, which somewhat supports the prices of corn on the Old Continent. Animal feed manufacturers, on the other hand, find it difficult to obtain rapeseed meal, it is a by-product of biodiesel, during the crushing of rapeseed, and biodiesel is no longer sold.
Durum and pasta exports up
Finally, while barley malt saw its trade reduced by 5% due to the drop in consumption of beer outside the home, exports of European durum wheat increased by 42% to fuel a very active trade in periods of containment, that of pasta (+ 5%). Europe increased its sales to Africa, Asia, the United States. But it is Turkey that has become the world's leading supplier of pasta, with record exports this year.
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