June 1, 2011

Rains to curb yield losses for Europe's largest wheat producers

Rains in France and Germany this week will help to curb yield losses in Europe's largest wheat exporters, according to World Weather Inc.

Wet weather forecasted for this week in "many areas" of Europe "should help improve late spring and summer crops," Drew Lerner, president of World Weather, said in a report today. "This week's moisture will stop the decline in production potentials."

Wheat production in the EU, which makes up a fifth of global output, may fall 2.1% this year, the International Grains Council said on May 26. The driest weather in 50 years in France and the hottest April in at least 352 years in the UK have hurt yields. Germany's wheat harvest will fall 7.2%, Deutscher Raiffeisenverband e.V. said on May 18.

Wheat futures for July delivery o CBOT fell 39.5 cents, or 4.8%, the biggest decline in two weeks. Futures for November delivery on NYSE Liffe in London fell 2.8% while the price in Paris gained 0.4%.