EU sees smaller wheat crop, record exports in 2022/23

MOST ACTIVE PARIS, July 1 (Reuters): The European Union's executive on Friday lowered its forecast for soft wheat production in the bloc in 2022/23 to well below last season's level but maintained its outlook for record exports.

In supply and demand data, the European Commission pegged usable production of common wheat, or soft wheat, in the EU at 125.0 million tonnes, down from 130.4 million projected a month ago and compared with 130.1 million harvested in 2021/22.

In an accompanying presentation, the Commission cited reduced yields for several countries including France, Poland, Romania and Spain, without giving further details.

Other forecasters have also lowered their expectations for the EU wheat crop following drought and heatwaves.

However, the Commission kept unchanged its projection of EU soft wheat exports in 2022/23 at 38 million tonnes, which would be a record for the bloc.

Traders and analysts are expecting strong demand for EU wheat in the 2022/23 season that starts this month, as Russia's invasion of Ukraine and related sanctions disrupt massive Black Sea grain trade.

For the past 2021/22 season, the Commission cut its estimate of EU soft wheat exports to 30 million tonnes from 31 million a month earlier.