According to the latest circular by the USDA, wheat production in the EU for the 2023/24 harvest is estimated to be 138 million tons, a decrease of 2% from the previous month but still up 3% from last year and 4% above the five-year average. The harvested area is expected to be 24.4 million hectares, virtually unchanged from last year. The decrease in production is attributed to worsening conditions, including drought and poor rainfall in various European countries.
The drought and extreme heat mainly affected southern Spain, while northern countries along the Baltic Sea experienced concentrated drought. Germany, France, and the Baltic countries saw reductions in wheat production, and Spain and Italy also experienced significant damage to their crops. Despite the challenges, heavy rains in Central Europe helped strengthen crop expectations but also raised concerns about crop quality.