UK and Europe

Prospects for Harvest 2002 - September
Allied Mills, Aug 23, 2002

The prospects of a large UK wheat crop with excellent quality appear to have been severely dented, with harvesting continually delayed by rain showers. Accumulated UK rainfall for the month of July finished at 77mm, 30mm higher than last year, and almost twice the five year average. ... This poor weather has led to widespread reports of sprouting in all areas, but especially concerning are those reports from the Eastern Counties - the breadbasket of the UK, growing over half of the national crop. Quality of breadwheat has deteriorated ... There are also reports of export cargoes of UK Group 1 breadwheat trading to continental and especially German millers, to replace their flood damaged domestic wheat. ... The three weeks of heavy rain across mainland Europe not only produced the record floods we saw on television, but came just as the wheat crop was ready to harvest. Germany has agreed an aid package with the EU Commission for the flood hit farmers, and has lobbied to reduce Intervention support quality standards to help farmers hit by rain damaged crops. The production of wheat in Germany, according to their Agriculture Ministry is down by 8.5% at 20.6 m tonnes, and some trade estimates talk of over half the crop being downgraded to feed quality. Germany is a traditional source of high quality breadmaking wheat not just for the UK, but also to many European and world customers, so this represents a further setback for world quality wheat supplies. As mentioned in the last report, the real focus has however turned to the world wheat scene, where market prices keep rising