Mars, the European Union's crop monitoring service slightly raised its forecast for European soft wheat yields, citing favourable
prospects in eastern Europe, and the Iberian Peninsula.
Mars lifted wheat prospects across the EU 0.03 tonnes a
hectare, to 6.10 tonnes.
This leaves yields some 4.6% over the five-year average, although
down 2.9% year on year.
French yields cut
But prospects for France, the EU's top grower, were cut,
thanks to prolonged unwanted rain, and very little sunlight, across the north of
Mars cut its yield forecast by 0.08 tonnes per hectare, to
7.37 tonnes per hectare.
This would leave yields down 6.9% from last year, but would
be 0.5% on the five-year average.
The Mars forecast for French wheat was well above the 7.07m
tonnes per hectare forecast by the French farm ministry this month.
And crop forecasts from private analyst firms have been even
Wet weather, low
"The poor conditions observed in late May continued in June
with substantial rainfall, exceptionally low global radiation and near-average
temperatures," said Mars.
"Overly wet conditions led to saturated soils," Mars said. "The
yields of soft wheat, winter and spring barley (the most impacted crops) have
been revised downwards, and are now close to the five-year average and greatly
below last year's yields.
Quality of wheat is also expected to take hit, although durum
wheat was less effected, due to better weather in the south.
German yields steady
In Germany, the Commission noted no major obstacles to the
grain filling of winter and spring cereals, despite the low radiation levels
and very wet conditions in most of the country in June".
For German wheat, the Commission said "the yield forecast
remains practically unaltered from the June Bulletin and close to the five-year
average, but slightly below last year's yield.
December wheat futures were up 0.1% in afternoon deals in
Paris, at E174.00 a tonne, but down from the session highs of E177.0 a tonne.
September Paris wheat futures were down 1.0%, to E172.25 a
tonne, from eight month highs of E177.25 a tonne.