September 22, 2011

EU's wheat production to decline 2.9%

The EU's wheat yield will decrease 2.9% from last year amid declining output in France, the bloc's largest wheat producer, according to a report from the Monitoring Agricultural Resources Unit.

According to Bloomberg, the report stated that wheat output in the 27-nation bloc will total 135.4 million tonnes. French soft-wheat yields are expected to fall 6.6% from last year to 6.57 tonnes a hectare (2.5 acres), according to the report released yesterday (Sep 21). EU barley output will fall 2.8% to 51.9 million tonnes in 2011 as French winter yields will drop 10% and spring yields decline 8.7%, the bloc said.

"Toward the end of July until the beginning of August, rainfall occurred predominantly in central Europe," MARS said, adding rain was plentiful around the North Sea and Baltic Sea for August. "Access to fields for harvesting was hampered and held up by spells of abundant precipitation."

Milling wheat traded on NYSE Liffe in Paris has risen 6.2% since July 1, even after Russia started shipping the grain following a nearly yearlong export ban.

German wheat yields are expected to total 7.26 tonnes a hectare, changing little from the prior year, while barley yields may fall 4.9% for winter crops and 4.5% for the spring grains, according to the report.