Grain prices prompted EU producers to cut production

Wheat

Russia

Published Mar 18, 2024

Tridge summary

European Union farmers are grappling with a potential collapse in export sales and overcrowded warehouses, with no prospects of sales recovery before the new harvest. Major wheat producers in the region, such as Germany and France, are set to harvest less in 2024 compared to 2023. The situation is further exacerbated by stagnant wheat prices expected in 2024 and China's cancellation of a million-ton wheat purchase. In contrast, Russia's wheat harvest is projected to remain steady at around 92 million tons, mirroring last year's yield.

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Original content

Overcrowded warehouses and a collapse in export sales left no hope for EU farmers to restore sales before the new harvest, the online publication Agrarheute reported on March 15. Most major European wheat producers plan to harvest less in 2024 than in 2023. In Germany, wheat production will decrease by 6.5% to 20.14 million tons. Manufacturers in France are likely to do the same. The French agricultural agency FranceAgriMer forecast wheat stocks at the end of the marketing year at 3.74 million tons, the highest level since the 2004-2005 season. In Russia, the new wheat harvest is predicted to be no worse than last year’s, that is, about 92 million tons. The harvest of all grains will be about 145 million tons, according to the President of the Russian Grain Union Arkady Zlochevsky. There is no reason for wheat prices to rise in 2024. The situation is aggravated by China's cancellation of the purchase of a million tons of wheat. The message came at a time when the price was ...

Source: Zol