Strategie Grains forecasts a good grain harvest in the EU in the next season

2019-01-18 12:50:57
Machine translation
Strategie Grains forecasts a good grain harvest in the EU in the next season

According to analysts Strategie Grains, in the next season, the European Union expects grain stocks, because, according to the forecast, grain production recovers from last year's drought and surpass the growing demand.

 

a monthly report from Strategie Grains lowered its forecast for soft wheat production in the EU in 2019 from 600,000 tons to 146,4 million tons, but nevertheless, 15 percent more than was produced in 2018.

 

also Expected to increase barley production by 11 percent and increased corn production by 4 percent, assuming no extreme weather conditions like last year, when in some parts of Europe hit record temperatures and a prolonged drought.

 

Other experts expect a sharp rise in cereal production in the EU in 2019 through the recovery and yield of grain crops is oilseed rape.

 

"We do not expect that the use of GRAIN in animal feed or the export is high enough to provide the volume corresponding to the scope of a large potential crop," reports the French company Strategie Grains.

 

"now, the prospects of the grain market in the EU are bearish for the 2019/20 year."

 

In the forecast of supply and demand in the 2019/20 season, which begins in July, analysts noted that the export of soft wheat from the EU may rise by at least 6 million tons of the expected volume 2018/19 year at 18.5 million tons to meet strong foreign demand.

 

They also saw opportunities for increased industrial demand for grain in the EU, in particular through the wider use of fuel ethanol and increasing production of starch.

 

However, to use more of the expected abundant harvest of wheat and barley will need to attract additional demand from feed producers, becoming more competitive compared to imported corn.

 

currently, it is expected that corn imports in the EU in the next season will be reduced from projected record levels 2018/19 year, but, according to Strategie Grains, its level will remain high.

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