May 25, 2012

 

Western Europe sees bumper corn crop in 2012

 

 

Though a weather-delayed sowing campaign may prevent yields from reaching 2011's high levels, Western Europe is on course for another bumper corn crop after farmers planted more than last year.

 

Attractive market prices and the need to replace an unusually large amount of winter crops damaged by frost led growers to increase the area devoted to corn, which is harvested in late summer and autumn in Europe.

 

For the EU as a whole, leading crop analyst Strategie Grains expects 2012 production to reach 65.6 million tonnes, close to an estimated 66.1 million last year.

 

In France, the EU's top corn grower, planting of grain corn was virtually finished, with forecasters expecting the area to rise 4-5% on year to 1.6 million-1.7 million hectares.

 

After an early start to sowing amid dry, warm conditions in March, fieldwork was hampered in April by heavy rain and plant development was curbed by wet, cool conditions.

 

"In the past two or three years we have become used to increasingly dry springs," Jean-Paul Renoux, head of corn at French grains institute Arvalis, said. "This year we've returned to more of a coastal climate, with several phases of sowing."

 

According to most recent crop ratings from farm office FranceAgriMer, 83% of grain corn had been planted by mid-May against 98% a year earlier while 68% of plants had emerged versus 94% a year ago.

 

The drawn-out campaign and damp conditions meant some crops had lost the benefit of early planting which lets them develop strength before mid-summer heat. Increased disease and excess water even led to the resowing of some fields.

 

"Last year we had a record yield, for the moment we're heading more towards an average level," Alexandre Marie of grains consultancy Offre & Demande Agricole (ODA) said.

 

But analysts said the critical period for yield potential remained the summer and recent rainfall had improved the outlook for crops by alleviating low water reserves.

 

ODA forecasts a French grain corn crop of 14.4 million tonnes this year, while Strategie Grains puts it at 15.6 million. Last year, France harvested 15.9 million tonnes, according to the farm ministry.

 

Corn planting in Italy, another major corn producer in Europe, was also nearly over and expected to bring a slight increase in area as farmers were attracted by high prices.

 

The corn crop, due in September, is expected to rise 1% to 9.88 million tonnes on the back of a 3.8% increase in plantings to 1.03 million hectares, Italy's agricultural research centre ISMEA said.

 

"Sowing went fairly well. Now everything depends on summer weather," one grain trader said.

 

With sowing just finished, it was too early to forecast 2012 yields, ISMEA said, explaining that it had applied average yields of the last five years, which were lower than 2011 levels.

 

In Germany, which like France suffered substantial losses of winter crops, the corn area was also estimated to have risen as farmers re-sowed damaged fields with spring crops. German farmers have increased sowings of grain corn by 8.4% to 529,000 hectares, Germany's statistics office estimates.

 

"There is no doubt that a lot of wheat and barley damaged by the frosts in February have been replaced by corn but dryness in the spring and late sowing is likely to keep yields down," one analyst said.

 

Germany's farm cooperatives association forecasts the 2012 grain corn harvest will fall 0.8% to 5.14 million tonnes as a projected fall in average yield to 0.97 tonnes a hectare from 1.07 tonnes last year offset a rise in area.

 

Germany also grows a large amount of silage corn for biogas and on-farm feeding, and the statistics office estimated this year's area would rise 6.1% to 2.151 million hectares.