Reuters – Europe’s grain crop is expected to drop due to wildly ranging growing conditions, according to an Aug. 2 report by the U.S. Department of Agriculture’s Foreign Agricultural Service post in Madrid, Spain.
The agency reported that the bloc has suffered “weather conditions ranging from excessive heat to cooler-than-average temperatures, and from drought to excessive moisture,” which have lowered 2023-24 winter grain harvest expectations.
“July’s heatwave also raised concerns over EU corn crop prospects,” the USDA said. “The deterioration of the domestic crop is expected to prevent EU grain exports from expanding and supports steady imports.”
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The agency also pointed to growing market volatility from Russia’s withdrawal from the Black Sea Grain Initiative in mid-July.
“If trade disruptions extend until autumn, alternative channels would need to be found to release the grain crop out of Ukraine. Intra-EU trade would then become particularly critical and EU grain exporters could regain competitiveness in third countries markets,” the report said.