Commodity Reports: AHDB

Wheat supply up but ‘quality issue emerging’

By Kacey CULLINEY contact

- Last updated on GMT

Related tags: Supply and demand

Wheat supplies have hit record levels across the globe, but for France and some other European markets quality concerns are emerging, warns an analyst.

Last week, the US Department of Agriculture (USDA) published its WASDE (World Agriculture Supply and Demand Estimates) report, noting that global wheat supplies were up 6.6m tons.

Speaking to, Helen Plant, senior market analyst at the UK’s Agriculture and Horticulture Development Board (AHDB), said wheat production had hit new records.

However, demand was not enough to absorb all the extra production, she said, causing surplus wheat stocks and putting pressure on prices.

This was a major turnaround compared to the past few years, she said.

“It’s quite a contrast, we’ve now had two years of relatively good, even very good at times, weather conditions and that’s really replenished supplies after two years where we were looking at production-demand deficit.”

France ‘significant’ wheat quality drop

However, there were clear challenges this year despite improved supply, Plant warned.

“One of the challenges this year has been, or is becoming… there is a quality issue emerging.”

This, she said, was keeping milling wheat prices at a greater premium to the feed grade wheat compared to last year.

The main problem had been rain at harvest, particularly in France but also other parts of Europe and Ukraine, she said.  “We are seeing overall the availability of the high quality wheat being impacted.”

France, for example, estimated provisionally that 59% of the wheat crop would be good or very good for milling; that compared to 95% in the previous year, she explained.

“Although you’ve got a greater supply of grains overall, the availability of the sort of quality end of the market certainly looks to be tighter.”

The France drop in quality was a significant drop, she said, but it was something that market had been monitoring since early July, she said. Persistent rain had been a cause for concern throughout this harvest, she said.

“It’s only now as you get after-harvest finish that the statistics come out to back it up.”

Looking forward?

Plant said focus would now be turned to the US maize harvest which was in its early stages – about 4% complete but also the Australian wheat harvest which was at its critical yield-forming period.

Related topics: Commodities, Bread, Snacks, Ingredients

Related news

Show more

Related products

show more

High fibre snacks take the lead

High fibre snacks take the lead

Taura Natural Ingredients | 07-Jun-2019 | Technical / White Paper

Dietary fibres offer a broad range of health benefits. An adequate intake of dietary fibres is essential to promote general health and to prevent several...

The Elegance of Expeller Pressed

The Elegance of Expeller Pressed

Bunge Oils | 16-May-2019 | Technical / White Paper

Simply put: today’s consumers want food, simply. Shoppers are choosing products with fewer ingredients that are closer to the fresh foods they know. One...

Stable antioxidants for deep frying applications

Stable antioxidants for deep frying applications

Kancor Ingredients Limited | 18-Mar-2019 | Technical / White Paper

Natural antioxidants like rosemary extracts affect the colour and nature of frying oil. OxiKan R, a highly refined extract of rosemary, stabilises oil...

Related suppliers

Follow us


View more