January 19, 2006

 

EU industrial feed output to rise In 2006-07
 

 

The European Union will produce 132.2 million tonnes of industrial feed in 2006-07, which is up 1.0 million on the year, said Strategie Grains, a monthly analytical report published Thursday.

 

Barley consumption will rise at the expense of wheat and corn due to a projected rise in on-farm feed use, the report said.

 

Still, Strategie Grains warned that this estimated growth could be scaled back if the bird flu crisis escalates.

 

European Union soft wheat stocks are likely to increase in 2006-07, according to Strategie Grains, a monthly analytical report published Thursday.

 

EU soft wheat supplies available for export in 2006-07 will total 26.0 million metric tonnes, of which 15.0 million tonnes will be located on the open market, said the report, basing the figures on current crop forecasts.

 

"This level of export availability is extremely high and will mostly be located in France, Germany and Hungary," Strategie Grains said.

 

While a significant amount of this grain will be held in government intervention stores as of the start of the new marketing year on July 1, the report said the outlook remains "very heavy because export availability overshoots potential export demand to a very large extent."

 

Currently, Strategie Grains forecasts that the EU will harvest an additional six million tonnes of soft wheat this summer compared to 2005.

 

The report does factor in that tighter world supplies in 2006-07 will give the EU increased export capacity.

 

Strategie Grains also takes into account a 4.3-million-ton reduction in imports on the year, an expansion in bio-ethanol production to raise non-food wheat use by 700,000 tonnes, but a decline in wheat in animal feed use by 600,000 tonnes.