SIGNIFICANTLY-reduced prospects for Australian wheat export volumes in 2018-19 are now joined by declining production and export prospects for the Black Sea region and Europe.
And global prices have moved higher as production concerns grow.
In Europe, dry weather –especially across northern Europe affecting Germany, the Scandinavian and Baltic nations and Poland – has prompted a downward revision of wheat production prospects.
Lower yields and lower harvested hectares are now on the cards.
In its latest outlook, the US Department of Agriculture has revised down wheat production for Europe by four per cent year-on-year and from the five-year-average, although we expect this has not yet captured the full extent of reduced prospects.
This comes at a time when demand for feed grains in Europe will be elevated.
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(THE LAND 31/07/18)