Analysts are forecasting that after France has harvested a massive wheat crop this year, farmers will be sourcing wheat instead of corn for their feed rations. Analysts agree, as the crop office FranceAgriMer estimates that wheat usage for animal feed production for the country’s livestock industries will increase by 16% this season while demand for other grains such as corn will decline by 22%.
“Definitely the big wheat crop will substitute some of the corn needs in feed,” said Stefan Vogel, head of agricultural commodity research at Rabobank International in London.
Wheat usually trades higher than corn because of its higher protein content, but feed makers are taking advantage of a shift in prices after the country’s wheat harvest was more than a million tons larger than analysts had predicted in early August.
Soft wheat production in France climbed 8.8% to 40.8 million tons, which the country’s corn harvest is set to decline by a significant 27% to 13.7 million tons, according to a September 4 announcement by the Agriculture Ministry. Feed producers in the country are expected to purchase 5.1 million tons of wheat this season while only purchasing 2.9 million tons of corn – the lowest volume in six years, according to FranceAgriMer estimates.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.