Egypt's FEC, TRAIN partner to support food exporters    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Heatwave ravages European fields, sending wheat prices soaring
Published in Ahram Online on 02 - 08 - 2018

Searing heat has devastated wheat fields across northern Europe while a combination of dry conditions and extreme rain in the Black Sea have hit output estimates, with prices soaring on fears of further crop damage.
Evidence of serious harm to crops is growing as harvesting heads north in Germany, the European Union's second largest wheat producer, and in Scandinavia, prompting further cuts to estimates for the 28-member bloc.
"The situation is catastrophic in northern Europe," Strategie Grains head analyst Andree Defois said on Thursday.
The consultancy last week cut its forecast for this year's soft wheat harvest in the EU, collectively the world's largest wheat grower, below 130 million tonnes, a six-year low, and Defois said it could revise the estimate again.
France, the EU's top producer, has also experienced extreme weather, prompting forecasters to cut their estimates to around 34 million tonnes from 36.6 million harvested last year.
Scandinavia and other Baltic states have also suffered, with Sweden's wheat crop seen falling 40 percent while in Britain, where wheat crops are expected to fall to a five-year low, farmers are anxiously awaiting results as the harvest moves north.
"It's far worse than we expected," Sebastien Poncelet, analyst at Agritel said. "It has been months since it has rained in some parts of northern Europe and in Germany there should be no rain for at least another two weeks."
As harvesting progressed north Agritel revised its estimate for the European all-wheat crop by 3 million tonnes in the past week to 136.6 million tonnes, down 15 million on year, Poncelet said.
Reacting to the crisis, the European Commission said on Thursday it would speed up payments to farmers hit by extreme drought and allow them to use fallow land that normally would not be used for production to feed their livestock.
MEMORIES OF 2007/08
Wheat prices have surged more than 20 percent on European and U.S. markets in the past three weeks on mounting worries over global wheat supplies. Prices were also supported by a severe drought hitting crops in Australia.
Euronext milling wheat futures hit a more than five-year high of 214.50 euros ($249.36) per tonne on Thursday.
Overall output is seen falling to five-year lows, the International Grains Council said last week after lowering its forecasts for the EU's top four producers, France, Germany, Britain and Poland.]
The wheat rally is reviving memories of 2007/08 when surging prices prompted a food crisis. But analysts say high stocks and other grain crops could compensate for part of the shortfall.
Although a further rally in wheat could eventually inflate consumer prices, said Abdolreza Abbassian, chief economist at the United Nations' Food and Agriculture Organisation (FAO), the impact should be curbed by stocks from 2017's hefty harvest.
Germany's wheat crop, wilted by the highest May temperatures since 1881, is expected to shrink 25 percent this year, farmers' association DBV said.
The damage could see one of Europe's largest wheat exporters needing wheat imports in the coming year and has led to DBV calls for around 1 billion euros in drought aid.
Crops have not been as badly damaged in France, where harvesting had already started as the heatwave hit, and its wheat exporters are now seen as the main beneficiary of their neighbour's weather woes.
U.S. farmers could also benefit - potentially toppling Russia as the world's leading exporter, analysts said.
BLACK SEA RAINS
In the Black Sea region, crops have been hurt by both dry weather and pouring rain, hitting grain quality.
Quality concerns are key in Russia, as it means less wheat of milling or bread-making quality to offer on world markets.
"It is basically clear that the harvest will not reach the last year's record but it is still going to be relatively large," said Arkady Zlochevsky, head of the Russian Grain Union.
"The problem is mostly related to the quality."
Strategie Grains sees the Russian wheat harvest falling 18 percent this year, Defois said. Russia harvested a record 85.7 million tonnes wheat crop in 2017, durum wheat included.
In Ukraine, which exports the vast majority of its output, the wheat crop was seen falling up to 16 percent to 22-23 million tonnes after a spring drought and torrential rains in summer, the country's farm minister said.
Output in Romania, the EU's third largest wheat exporter, should fall at least 20 percent on the year, Laurentiu Baciu, President of the farmers association LAPAR said.
"Output drops could be even bigger than that, day by day that percentage is increasing and situation in the field is degrading," he said. "Rains have not stopped for a single day." ($1 = 0.8602 euros)


Clic here to read the story from its source.