Hot and dry weather reduces the production forecasts of wheat
Coceral, the European Agency on Monday lowered the forecast of wheat production in the EU by 2% to 138.8 mn tonnes, while the European Commission estimates it at 141.3 mln tons.
Dry weather in Germany, Romania and Poland would reduce the wheat harvest in the EU by 2% despite the increase in wheat production in France is 3% and in Spain 30%, for which thanks to the favourable conditions, forecast of production increased from 4.9 million tonnes to 6.37 million tons compared to 3.7 million tons last year.
Hot and dry weather in the main growing areas for winter wheat in Russia (Krasnodar, Stavropol Krai and Rostov region) will lead to a decrease in yield of wheat. The Agency SovEcon reduced the forecast of wheat production in Russia by 3.9 million tonnes to 73.1 MMT, although other analysts have lowered forecasts to 70-71 million tonnes.
Today, traders await the release of the monthly WASDE balance grain, so wheat futures on the us markets has largely decreased, and the analytical Agency tried to predict the evaluation of production and residues of wheat that will be in the report.
it is Expected that the assessment of the production and residue of wheat in the US will remain almost unchanged, while the main attention will be focused on the forecast of wheat production in the black sea countries.
In the USA winter wheat has already collected in the area of 14% with an average rate of 10% and the crop condition has improved by 1%. Seedlings of spring wheat obtained on 94% of the area compared to 89% on average on that date and the condition of crops also improved by 1 point, so in good and very good condition are now 70% of crops.