PARIS- Farm office FranceAgriMer on Wednesday raised its outlook for French soft wheat exports within the European Union this season while reducing expectations for shipments outside the bloc.

In cereal supply and demand projections, FranceAgriMer raised its projection of French soft wheat exports to other members of the 27-country EU in the 2021/22 season to 8.0 million tonnes from 7.3 million initially forecast in July.

Soaring ocean shipping rates and brisk demand in the Benelux countries and Iberian peninsula - major livestock feed markets - were stoking intra-EU trade, FranceAgriMer said.

"The cost of freight is working in favour of nearby destinations," Marc Zribi, head of FranceAgriMer's crop unit, told reporters.

FranceAgriMer lowered its forecast of non-EU soft wheat exports in 2021/22 to 9.6 million tonnes from expected 10.5 million in July, although this would be above an estimated 7.4 million in 2020/21.

The office played down the impact on exports from rain-affected quality in the French harvest, arguing that weak results for test weights, a common milling criteria, were more a cost factor for millers than an issue for bread quality. 

French harvest results have led countries like Algeria and China to ease import specifications, according to traders.

The office reduced its outlook for soft wheat stocks by the end of the 2021/22 season next June to 2.9 million tonnes from 3.7 million estimated in July.

The supply and demand outlook took account of the French farm ministry's cut in the soft wheat harvest estimate to 36.06 million tonnes, against 37.10 million seen in July. The crop would still be 24% above last year's poor harvest. 

For barley, the office slightly raised its outlook for this season's ending stocks to 1.36 million tonnes, from 1.33 million forecast in July.

An upward revision to harvest supply was offset by a cut in last season's ending stocks and a rise in projected barley exports within the EU, now seen at 2.8 million tonnes against 2.5 million in July.

For maize, FranceAgriMer trimmed its estimate of 2020/21 ending stocks to 1.80 million tonnes from 1.86 million.

The office has not yet issued forecasts for the 2021/22 season in maize, with harvesting only just starting.

(Reporting by Gus Trompiz and Sybille de La Hamaide; editing by David Evans) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))