June 18, 2009

Strategie Grains has revised down European Union 2009-10 soft wheat production to 126.3 million tonnes due to a lack of rain in countries including Hungary and Romania, the firm said Thursday (June 18).

 

The UK and Spain are also suffering from dryness, which has seen the monthly estimate revised down 2.6 million tonnes from May forecasts, said the French analytical firm.

 

This is a 10 percent fall from the bumper crop of 2008-09 where EU soft wheat production reached 140 million tonnes.

 

Dry weather also contributed to EU barley production being trimmed to 59.2 million tonnes, down 2 million tonnes from the May forecast and 10 percent on the year.

 

Meanwhile 2009-10 corn production has also been cut to 57.4 million tonnes, from the May forecast of 58.6 million tonnes and down 8 percent on the year.

 

The combination of these revisions has lead to EU grain production being pegged at 283 million tonnes, down from May's estimate of 290 million tonnes and down 9 percent on the year.

 

However, the firm added that its forecasts are subject to change depending on weather conditions.