The heat decimated the European fields, sending wheat prices soaring

  • The heat decimated the European fields, sending wheat prices soaring
    FarmIreland.t. E.
    Burning heat ravaged wheat fields in Northern Europe while the combination of dry conditions and extreme precipitation in the Black sea click estimated output, price hikes on fears of further damage to the crop.
    https://www.independent.ie/business/farming/tillage/grain-prices/heatwave-ravages-european-fields-sending-wheat-prices-soaring-37179354.html
    https://www.independent.ie/incoming/article37179349.ece/b12ac/AUTOCROP/h342/2018-07-26T134003Z_1042083554_RC145D5A33D0_RTRMADP_3_GRAINS-IGC.JPG

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Burning heat ravaged wheat fields in Northern Europe while the combination of dry conditions and extreme precipitation in the Black sea click estimated output, price hikes on fears of further damage to the crop.

Evidence of serious harm to agricultural crops growing, like a gathering of leaders of Northern Germany, the second largest EU wheat producer, and in Scandinavia, causing a further decline in ratings over the 28-member bloc.

“The catastrophic situation in Northern Europe”, – said the head analyst strategy grains Andree Defois said on Thursday.

Consultation last week reduced its forecast for soft this year wheat crop in the EU, collectively the world’s largest producer of wheat, less than 130 million tons, a six-year low, and said Defois he may again reconsider this assessment.

France, the top EU producer, also experienced extreme weather conditions, prompting forecasters to cut their estimates about 34 million tons, compared with 36.6 million harvested last year.

In Scandinavia and other Baltic States also suffered, with the wheat harvest in Sweden saw a fall of 40%, and in the UK, where wheat crops are expected to fall to five-year low, farmers look forward to the results as the harvest moves North.


File photo: a French farmer harvests wheat at sunset, Bourlon, Northern France, on July 19, 2018. Reuters/Pascal Rossignol/file photo

“This is much worse than we expected,” Sebastien Poncelet, an analyst with the French company agritel said. “It’s been a month since it rained in some parts of Northern Europe and in Germany there should be no rain for at least another two weeks.”

As the harvest moved North, the French company agritel has revised its estimate of the European wheat crop by 3 million tons last week to 136.6 million tonnes, 15 million a year, said Poncelet.

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In response to the crisis, the European Commission said Thursday it will speed up payments to farmers hit by extreme drought and allow them to use derelict lands, which, as a rule, will not be used for production to feed their cattle.

MEMORIES 2007/08

Wheat prices rose more than 20 percent on the European and American markets in the last three weeks on mounting concerns about global supplies of wheat. Prices were also supported by a severe drought hit crops in Australia.

Exchange milling wheat futures were down more than five-year high of 214.50 euros ($249.36) per tonne on Thursday.

Total production fell to five-year lows, the international grains Council said last week after lowering its forecasts in the four EU producers, France, Germany, UK and Poland.]

The rally in wheat revives memories of 2007/08, when prices triggered a food crisis. But analysts say high inventories and other crops can offset part of the drop down.

Although further increase in wheat could eventually inflate consumer prices, said abdolreza Abbassian, a senior economist at the United Nations food and Agriculture Organization (FAO), the impact should be limited to stocks with a fair crop of 2017.

Germany: harvest of wheat, wilted highest temperature since 1881, is expected to decline this year by 25 percent, the farmers ‘ Association DBV said.

Damage could get acquainted with one of Europe’s largest wheat exporters who need to import wheat in the coming year, and led to DBV requires about € 1 billion in drought assistance.

The crops were not so badly damaged, in France, where the harvest has already begun, as the heat hit, and his wheat exporters currently seen as the main beneficiary of the weather woes of its neighbors.

American farmers can also take advantage of potentially overthrow Russia as the leading exporter in the world, analysts say.

BLACK SEA OF RAINS

In the black sea region, the crops have suffered from both dry weather and pouring rain, impact grain quality.

Quality problems are Central to Russia as it means less wheat milling and baking quality to offer on world markets.

“It is clear in principle that the crop will reach a record last year, but it will still be big enough,” said Arkady Zlochevsky, head of Russian grain Union.

“The problems are mainly associated with the quality”.

The strategy sees the Russian grains harvest of wheat falls to 18 percent this year, said Defois. Russia harvested a record 85.7 million tons of wheat crop in 2017, durum wheat included.

In Ukraine, which exports most of its products, the wheat harvest will decline by 16% to 22-23 million tons after the spring drought and heavy rains in the summer, the Minister of economy stated.

Output in Romania, third in EU in terms of exports of wheat, must fall by at least 20 percent a year, Baciu, President of the farmers ‘ Association LAPAR said.

“The decline of output may be even bigger day by day this number is growing and the situation is getting worse,” he said. “The rains do not stop for one day.”

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