The price of %Wheat is surging as concerns grow about this year’s crop in Europe.
Wheat production across the European Union (EU) this year is now forecast to come in at 116.5 million metric tons, down 4.7% from an outlook issued earlier this year.
Total grain production in Europe is expected to decline on an annual basis to 267.4 million metric tons from 271.2 million last year, according to data from the U.S. Department of Agriculture (USDA).
Excessive rainfall in parts of France and Germany, which account for 25% and 15% of European grain production respectively, has hurt crop yields during the current growing season.
The result is that wheat futures for September delivery gained $0.08 U.S. to $5.45 U.S. per half a bushel on the Chicago Mercantile Exchange.
At the same time, prices for soybeans have risen modestly and corn is little changed as the outlook for those key agriculture products remains little changed from earlier forecasts.
The outlook for wheat production in the U.S. and Canada also remains little changed from previous forecasts.
