The European Union sees smaller wheat crop and record exports in 2022/23

Wheat

Published Jul 2, 2022

Tridge summary

PARIS (Reuters) - The European Union's executive body on Friday lowered its forecast for common wheat production in the bloc in 2022/23 to a level well below last season's but maintained its outlook for record exports. In supply and demand data, the European Commission has set usable production of common wheat in the EU at 125.0 million tonnes, down from 130.4 million projected a month ago and 130.1 million in 2021/22.

Original content

In an attached presentation, the Commission cited reduced yields in several countries, including France, Poland, Romania and Spain, without providing further details. Other analysts also lowered their expectations for the EU wheat crop after the drought and heat waves. However, the Commission kept its projection of EU common wheat exports in 2022/23 at 38 million tonnes, which would be a record for the bloc and well above the 2021/22 estimate of 30 million tonnes. Traders and analysts expect strong EU wheat demand in the 2022/23 season, which starts this month, as Russia's invasion of Ukraine and conflict-related sanctions disrupted the Black Sea grain trade. The lower harvest forecast led the Commission to reduce its forecast of EU common wheat stocks at the end of 2022/23 by 4 million tonnes to 13.2 million tonnes. The bloc's executive body made smaller cuts in harvest forecasts for other crops. Usable corn ...

Source: Mixvale