Strategie Grains raises its maize harvest forecast within the EU and reduces its imports

Strategie Grains has sharply elevated its forecast for this yr’s maize crop within the European Union resulting from good crop yields and a revised Polish estimate, she mentioned Thursday.

In a month-to-month cereals report, the consulting agency projected 2021 maize manufacturing within the European Union to 27 international locations at 67.5 million tonnes, up from 64.9 million tonnes beforehand anticipated and above the 2020 harvest of 64.6 million tonnes.

Farmers are harvesting maize in Europe, with fieldwork off to a gradual begin in some international locations, growing consideration to reap prospects.

The upper manufacturing outlook has led Strategie Grains to cut back its forecast for EU maize imports for the 2021/22 season to 13.9 million tonnes, from 14.4 million final month and now barely beneath of stage 2020/21.

Regardless of the anticipated improve in crop provide, EU corn shares this season “will stay reasonably tight,” the consultancy mentioned because it revised demand for corn upwards.

Aggressive costs in comparison with wheat and barley had been attracting larger use of corn in animal feed and industrial merchandise like starch, he mentioned.

Nevertheless, he warned that top commodity prices may dampen demand from pastoralists sooner or later.

Bettering margins for ethanol are additionally anticipated to result in elevated demand for corn for biofuels in comparison with final season, he added.

For wheat, the rise in costs decreased export competitiveness in addition to fodder use, particularly for French wheat.

French wheat exports anticipated in 2021/22 had been decreased by greater than 500,000 tonnes since final month, notably to Algeria, and French prospects in Morocco and sub-Saharan Africa would even be decreased if costs stay excessive, a declared Strategie Grains.

Nevertheless, it elevated its forecast for EU-wide tender wheat exports in 2021/22 from 1 million tonnes to 32 million, partially to have in mind the numerous exports already made by Bulgaria, Romania and the international locations Baltic.

Wheat provides had been nonetheless anticipated to be tight by the tip of the season, regardless of a slight improve in Strategie Grains’ estimate of EU tender wheat manufacturing.

Barley costs are additionally anticipated to stay excessive and shares low, with a decreased crop estimate partially offsetting the lack of some export demand to Australia and feed demand for maize, a t -he declares.
Supply: Reuters (Reporting by Gus Trompiz; modifying by Jason Neely and Kim Coghill)

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