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Markets

EU wheat mostly in good condition going into the winter

Published December 16, 2016 Updated December 16, 2016 01:47pm

imageHAMBURG: The wheat crop in the main European Union producers is generally in good condition going into the winter, experts said on Friday, raising optimism for an ample 2017 harvest for export and domestic consumers, experts said on Friday.

"Poland is the main area of concern, at this stage the picture is better in the biggest producers after the mild winter start," one German trader said.

In the largest EU wheat producer France, crops are in good shape raising the potential for a large harvest next year after farmers maintained the sown area near 80-year highs.

France's agriculture ministry estimates the winter soft wheat sown area for 2017 harvesting at a huge 5.2 million hectares, close to the area harvested in 2016 which was the largest since 1936.

French wheat largely escaped the impact of drought which disrupted rapeseed sowing and was sufficiently developed to cope with recent cold.

"At this stage there are no major problems to report," said Philippe Gate of crop institute Arvalis.

"Sowings were carried out on warm soil which allowed rapid plant growth. The cold then slowed this growth a little but the crops had already acquired a good sturdiness." But French wheat had been doing well last winter before appalling spring weather damaged crops and led to the worst yields in 30 years in the 2016 harvest.

In the second largest producer Germany, wheat is also in good shape after a mild start to the winter.

Based on seed sales, analysts say German farmers have sown an unchanged 3.2 million hectares of wheat.

In the third largest producer Britain, the crop outlook has improved after much needed rain in recent weeks, with wheat generally in good condition.

"It has been a difficult start particularly in the South East due to dry conditions at plantings but since then, growing conditions have improved greatly," said Benjamin Bodart of farm consultants CRM AgriCommodities.

Bodart estimates the UK wheat area at 1.8 million hectares, little changed from last season's 1.823 million. In fourth largest producer Poland, the picture is not so positive. Poland's winter wheat area will drop to 1.7-1.8 million hectares for the 2017 crop, down from 1.9 million hectares harvested in 2016, estimates Wojtek Sabaranski of analysts Sparks Polska.

"The reason is poor planting weather, the higher profitability of rapeseed and larger rapeseed acreage," Sabaranski said. At this stage Polish winter wheat is in a mixed condition, depending on planting period and regions, he said.

Copyright Reuters, 2016

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