EU Grain Production Forecast Slashed Amid Adverse Weather Conditions
The European Commission has cut its forecast for grain production in the EU's 2026/27 crop year due to adverse weather conditions, affecting crops in major producing countries. The largest reduction was seen in corn output, which is estimated to fall by 14% compared to last year.
The Commission attributed the decrease in production forecasts to a decline in sown areas, high prices for fertilizers and energy, and abnormal heat waves. As a result, harvest estimates have been lowered across various crops, including soft wheat, barley, sunflower, and rapeseed.
Despite the reduced forecast, grain futures on the Euronext exchange in Paris actually fell last Friday. September wheat futures rose 3% to €222.75/t or $255.8/t, while November corn futures dropped 1.9% to €242.75/t. November rapeseed futures declined by 2.9% to €513/t or $589/t.