June 14, 2022

Wheat output in Italy expected to decline 15% due to drought risks

Italian agricultural lobby Coldiretti said the country's wheat output is expected to decline 15% this year because of a drought that has slashed yields, increasing Italy's reliance on imports, Reuters reported.

Russia's invasion into Ukraine has increased commodity prices because both countries are major wheat producers. An expected lower wheat crop in western Europe, including Italy, adds to already strained global supply.

On a total surface area of 1.71 million hectares cultivated for both durum and soft wheat, Coldiretti estimated that this year's wheat harvest would be around 6.5 billion kg on a national level.

The drop has an impact on cereal farmers, who are already dealing with higher production costs due to rising fuel and fertiliser prices.

The drop increased "dependence on foreign countries in a situation where Italy has become deficient in many raw materials and produces only 36% of soft wheat used for bread, biscuits, and cakes, and 62% of durum wheat used for pasta," according to the farm lobby.

Wheat futures in Chicago and Paris rose, as a hot spell was forecast in western Europe and doubts remained over talks to open a shipping corridor for Ukrainian grain.

-      Reuters