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cornPARIS: The European Union's crop monitoring unit on Monday further cut its outlook for maize yields in this year's EU harvest due to hot, dry conditions in the south and southeast of the bloc.

Maize harvesting is underway across Europe and the prospect of lower yields has added tension to global supply after the worst drought in over 50 years in the United States ravaged crops in the world's top producer and exporter of the grain.

The average yield in the EU's grain maize harvest is now estimated at 6.05 tonnes a hectare, down from 6.28 tonnes projected last month, the MARS crop unit said in a report.

The new forecast was 20.6 percent below last year's level and reflected sharply lower yields in Bulgaria, Hungary, Italy and Romania.

"Very high temperatures and scarce rainfall characterised the weather conditions in southern and southern-east Europe until the end of August before a more seasonal temperature regime was established in September," the report said.

"The hot spell continued to be coupled with scarce rainfall and led again to decrease summer crops yields in the affected countries."

MARS had previously reduced its maize yield estimate from 6.73 tonnes forecast in July and 7.38 tonnes seen in June.

MARS's monthly updates do not include any production estimates.

In Hungary, the average maize yield was now put at 3.86 tonnes a hectare, against 4.20 tonnes seen last month and down from 6.60 tonnes in 2011, MARS said in its latest report, stressing that the country had seen one of its worst droughts of the last 20 years.

In Italy, the maize yield would reach 7.82 tonnes, against 8.33 projected a month ago and 9.80 last year, while in Romania the estimated yield dropped to 2.34 tonnes from 2.61 in August and 4.48 in 2011.

In France, the EU's top maize producer, a lack of rainfall in the past month had meant average yields would be well below last year's bumper levels, although irrigation would help crops, MARS said.

It lowered its yield outlook for French maize to 9.28 tonnes a hectare from 9.43 tonnes last month and 10.19 tonnes in 2011.

MARS made only minor changes to its estimates of yields for winter crops, harvesting of which is virtually over in the EU.

For soft wheat, the EU's largest crop, it put the average yield at 5.53 tonnes per hectare, down slightly from 5.57 tonnes a month ago and compared with 5.59 tonnes in 2011.

Copyright Reuters, 2012

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