PARIS, June 15 (Reuters): Strategie Grains has lowered its monthly forecasts for this year's European Union wheat, barley and maize crops because of adverse weather, including dryness in Spain and northern Europe, the French consultancy said.
The reduced harvest outlook could lead to tight supply of maize and especially barley, though for wheat, high stocks and sluggish livestock feed demand were seen maintaining ample supply, it said in a cereal crop report.
The consultancy now anticipates EU soft wheat production of 128.7 million tonnes in the 2023/24 season, down from 130.0 million forecast in May though nearly 3 per cent above 2022/23 output.
Strategie Grains lowered its outlook for the EU barley harvest by 2 million tonnes to 47.9 million tonnes, putting the forecast more than 6 per cent below last year's production.
In Spain, which has been affected by severe drought this year, wheat and barley harvests were seen "at historically low levels", it said.
Regarding dry conditions in northern Europe, which have become a focus for the European grain market this month, Strategie Grains said it considered that yield potential had already been affected in the Scandinavian and Baltic countries. However, harvest prospects were better in France and southeast Europe, it added.
The consultancy reduced its maize 2023/24 production outlook to 61.2 million tonnes from 62.1 million in May, though that would be 17 per cent above last year's drought-hit level.
Spring planting of maize has been disrupted by heavy rain in some countries, including flooding in Italy, and very dry conditions in Spain, Poland and northern France, it said.
Strategie Grains cuts EU cereal crop forecasts on weather woes
FE Team | Published: June 15, 2023 23:34:00
Strategie Grains cuts EU cereal crop forecasts on weather woes
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