Strategie Grains forecasts EU grain area to fall 1.8% in 2010
Strategie Grains forecasts EU grain planting area to decrease 1.8% in 2010
According to the monthly report released by Strategie Grains on November 12, the grain planting area for the 2010 harvest in the EU will decrease 1.8% from the previous year to 56.97 million hectares, mainly due to declining planting profits, with farmers applying to place more cropland into set-aside programs.
The largest decline is in barley planting area. The EU barley planting area is expected to decrease 6% from the previous year to 13.09 million hectares.
Corn planting area will also decrease 2% from the previous year to 8.33 million hectares.
However, soft wheat planting area in 2010 will increase 1% from the previous year to 22.86 million hectares. Oilseed planting area will also increase.
The increase in wheat planting area will further expand the EU's huge wheat inventory. Strategie Grains expects the EU's carryout wheat stocks to exceed 6 million tons.
Strategie Grains stated that although wheat demand from the ethanol industry will increase, and usage in the feed industry will also rise, the EU wheat situation in 2010/11 will still remain poor.
Strategie Grains maintained its 2009/10 EU grain production forecast unchanged at 290 million tons, a decrease of 22 million tons from the previous year.
The largest decline is in barley planting area. The EU barley planting area is expected to decrease 6% from the previous year to 13.09 million hectares.
Corn planting area will also decrease 2% from the previous year to 8.33 million hectares.
However, soft wheat planting area in 2010 will increase 1% from the previous year to 22.86 million hectares. Oilseed planting area will also increase.
The increase in wheat planting area will further expand the EU's huge wheat inventory. Strategie Grains expects the EU's carryout wheat stocks to exceed 6 million tons.
Strategie Grains stated that although wheat demand from the ethanol industry will increase, and usage in the feed industry will also rise, the EU wheat situation in 2010/11 will still remain poor.
Strategie Grains maintained its 2009/10 EU grain production forecast unchanged at 290 million tons, a decrease of 22 million tons from the previous year.