EU 2009-10 soft wheat output forecasts up to 130 million tonnes

 

 

European Union 2009-10 soft wheat production has been revised upwards to 130 million tonnes from July's estimate of 126.5 million tonnes, due to good harvest results, French analytical firm Strategie Grains said Thursday (August 13).

 

"On Aug. 6, around 70 percent of the EU's soft wheat had been cut, and yields were higher than anticipated, notably in France and Germany," said the report. However, production is still expected to fall 7% on year from the bumper wheat crop in 2008-09.

 

The report said due to ample supplies, wheat prices are likely to remain under pressure, with EU closing stocks on June 30, 2010 estimated at 17 million tonnes.

 

"The balance sheet is very heavy for 2009-10, more so than last month, and the outlook for EU prices is bearish," said Strategie Grains.

 

The firm also revised up EU 2009-10 total grain production to 289 million tonnes, from its July estimate of 283 million tonnes, mainly due to the increase in soft wheat production. However, like wheat, total grain production is also anticipated to be down 7 percent on the year.

 

The outlook for 2009-10 EU corn production was near unchanged at 56.5 million tonnes, compared with 56.6 million tonnes in July, and down 9 percent on the year.

 

EU 2009-10 barley production was revised up by 1.3 million tonnes on the month to 60.7 million tonnes, due to larger than expected harvests for France, Germany and Denmark, said the report.