European Wildfires Fuel Fears of Rising Olive Oil Prices

European farmers are bracing for another challenging growing season due to extreme heat, drought, and wildfires that have ravaged crops across the continent. Olive oil prices may rise again in the coming months as a result.

The devastating effects of these natural disasters on European agriculture are already being felt. In France, thousands of tons of vegetables worth tens of millions of euros are estimated to have been lost. The production of some crops, including leafy vegetables, carrots, leeks, garlic, and onions, could be reduced by as much as half.

In Spain, forecasts for this year's cereal harvest have been cut from 24 million metric tons to just over 18.5 million metric tons. The European Union has also lowered its production forecasts for sunflowers, corn, potatoes, and soybeans. Corn estimates have been reduced by 6% compared with the previous forecast.