German farmers' group trims wheat prospects

17.08.2016

The German association of farm cooperatives trimmed its idea of the country's wheat harvest by some 1.2m tonnes, citing heavy rain.

The association saw production in the EU's second-ranked wheat grower at 24.21m tonnes, down from the 25.40m tonnes forecast last month.

This will leave the crop down 8.8% year on year, and would be the smallest harvests since 2012.

But the association was more positive on wheat quality, which was expected to be good despite the rain.

Wet weather hits harvest

As well as wet weather in the south, and dry weather in the north, in early summer, the crop has also been hit by rain during harvest time, the association said, with dry weather needed to complete the harvest.

The Paris based consultancy Agritel said Germany experienced dry weather over the weekend, "and should register a significant advance of works this week".

Germany's 2016 winter rapeseed harvest, which is almost complete, was forecast to fall by 10.9% on the year to 4.46m tonnes, a 480,000 tonne trim from the July forecast.

French crop shortfall

The weak German harvest will only add to the tightness in EU production, considering the widespread rain damage to the French crop.

French wheat production is now expected to be down some 30% year on year, after very heavy rains, particularly in the north of the country.

Last week the French consultancy Strategie Grains forecast EU wheat exports at 24.7m tonnes in 2016-17, due to lower availability.

This could be down from 33.7m tonnes in 2015-16, and the smallest exports since 2012-13.

Russia steps up

But Helen Plant, at ADHB noted, that "while French and German crop sizes are falling – forecasts for other major exporters are increasing, including Russia".

Ms Plant noted that in Friday's Wasde "the size of the increases for other major exporters more than offset the declines for the EU".

December wheat futures in Paris were up 0.3%, at E168.50 in afternoon deals.

 


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