Saturday, August 11, 2007

Rain, drought seen cutting West Europe wheat crop

Planet Ark, via Reuters: Rain this summer coupled with drought in the spring is expected to lead to smaller wheat crops this year in major west European producing countries, analysts and traders said on Thursday. "It is not a disaster but the big producers, especially France and Germany, seem to be heading for lower crops," one German analyst said.

"Supplies in the new season will be sufficient but not abundant. It looks like Europe will not produce a large crop." European wheat prices have jumped to record levels this month. French new crop wheat November futures hit a new high on Thursday of 227.00 euros, up from 161 euros at end-May.

"Rising wheat prices have largely been caused by concern about the tight international supply picture," a trader said….

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