EU Wheat Production Forecast to Decline in 2024-25 Marketing Year
Outlook and Projections
According to the USDA attaché in the EU, the bloc's overall wheat crop is expected to decline to 1274 million metric tons (MMT) in the 2024-25 marketing year. This represents a significant decrease compared to the previous year's production levels.
Factors Contributing to Decline
Several factors are contributing to the projected decline in EU wheat production. These include:
- Reduced acreage due to unfavorable weather conditions
- Lower yields as a result of disease and pest infestations
- Increased competition from other crops, such as corn
Implications for Corn and Barley Production
The decline in EU wheat production is expected to have implications for corn and barley production in the region. Corn use is forecast to increase by 60 million bushels to 150 billion bushels in the 2024-25 marketing year, as it is a more competitive alternative to wheat for food and feed.
On the other hand, foreign barley production is expected to decline in 2024-25, with cuts for the EU, India, Argentina, Russia, and Ukraine. This is due to a combination of reduced acreage and lower yields.
Market Analysis and Outlook
The decline in EU wheat production is likely to impact global wheat prices, which have been rising in recent months due to supply concerns. The increased demand for corn is also expected to support prices for that commodity.
Market analysts are closely monitoring the situation and expect to provide further updates as more information becomes available.
Contact Information for Inquiries
For further inquiries, please contact the Office of Agricultural Affairs Madrid at 011-34 91-587-2555.
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