Monday , 19 February 2018

Home » Markets » Strategie Grains raises EU wheat production outlook
Strategie Grains raises EU wheat production outlook

Strategie Grains raises EU wheat production outlook

French-based consultancy firm, Strategie Grain, today raised their projections for the 2016 European Union wheat production.

The consultants raised their forecasts by 1.9m tonnes, pegging the soft wheat crop at 146.7m tonnes, up from previous estimates of 144.8m tonnes.

Ideal winter growing conditions

Production estimates were buoyed by largely favourable conditions as “winter cereals exhibited excellent yield potential” for many of the key EU winter wheat cropping areas.

In particular, upward revisions were seen in key growing countries of Germany, Romania and Spain.

In these countries, winter crops benefited from largely benign weather conditions that aided plant development.

Lower EU stocks

The widely respected firm also noted a stronger than expected EU export program, pegged at 30.4m tonnes, which will lower carry-out stocks for the current 2015/16 season. It flagged stocks to come in at 14.7m tonnes, a drop of 0.9m tonnes from last month’s estimates.

The firm also noted that the lower prices were also stimulating consumption demand from the animal feed sector, which further contributed to the lower stock levels.

Improved spring cropping outlook

Looking ahead, Strategie Grains notes that nearly all acres that will be planted for spring barley and corn production have been planted.

The consultants are currently pegging the EU corn crop at 62.7m tonnes, which, if realised, will be a 9% rebound from last year’s drought affected crop.

Likewise, barley production is estimated to be higher than last year’s crop, the current projection at 62.5m tonnes is 1% higher than 2015.

The improved conditions for the EU grain production areas follow a recent trend of improving crop outlooks in key areas. In recent weeks we have seen upward revisions for EU, Russia, Ukrainian and US wheat production forecasts.

This new supply coming online, coupled with already burdensome global wheat stocks, should temper excessive bullish sentiment in the months to come.

(Source – http://www.agrimoney.com/news/strategie-grains-raises-eu-wheat-production-outlook–9570.html)

Strategie Grains raises EU wheat production outlook Reviewed by on . French-based consultancy firm, Strategie Grain, today raised their projections for the 2016 European Union wheat production. The consultants raised their foreca French-based consultancy firm, Strategie Grain, today raised their projections for the 2016 European Union wheat production. The consultants raised their foreca Rating: 0
scroll to top