Posted on January, 16, 2023 at 09:03 am
European Union production of major cereal crops should rise next year after a 2022 harvest marked by drought and heatwaves, consultancy Strategie Grains said on Thursday.
In initial projections for the 2023 harvest, Strategie Grains forecast soft wheat production at 128.7 million tonnes, up 2.5% from 125.5 million this year.
For maize, it anticipated output would recover to 63.7 million tonnes, up 26% from a 15-year low of 50.5 million for 2022.
Barley production was seen increasing 2% to 52.5 million tonnes from 51.3 million this year.
"The year-on-year production growth that we forecast for 2023 is based on better weather conditions than those of 2022, which reduced harvest levels and were catastrophic for maize," Strategie Grains said in a monthly cereal report.
"However, our production forecasts err on the side of caution because of higher production costs, notably for fertilisers, which could force some farmers to review their crop management."
Cereal crops in Europe were mostly in good condition, the French firm said, though it noted a late return of rain in southeast Europe had hampered planting.
Grain markets are also monitoring a cold spell in Europe for any local damage in areas where crops may face double-digit negative Celsius temperatures without snow cover. GRA/EU
Source: Nasdaq