French wheat is headed to New York despite the country’s disastrous harvest, a sign that American flour mills will continue to tap European supplies after years of declines in local production.
The vessel Patagonia set sail for the US in late August, carrying almost 27,000 tons of French wheat, according to data from the port of Rouen. The supplies are expected to unload at Albany, New York, where Ardent Mills has a facility along the Hudson River. The company, owned by Cargill Inc., CHS Inc. and Conagra Brands, didn’t respond to a request for comment.
The trade also comes as France, the European Union’s largest wheat producer, is harvesting one of its worst crops in recent memory, with downpours expected to slash output to the lowest in 40 years. The sale was likely made months ago, when French wheat was trading at a discount to the grain in the US.
France has been struggling to compete in markets closer to home due to abundant and inexpensive supplies from the Black Sea region. The nation has lost market share among some of its traditional customers in Africa, and gaining buyers in the US may be good news for French exporters.
US millers also resorted to imports from Europe last season, bringing in grain from countries as far afield as Poland. The EU exported about 474,000 tons of soft wheat to the US last season, the highest level in commission data going back to 2001.