Heatwave in EU reduces corn harvest and spurs record imports

Source:  Bloomberg
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Scorching temperatures are hurting the European Union’s corn crop, putting the region on track for its biggest import of the grain in three seasons. The heat has significantly dampened the outlook for corn quality and yield, especially in key producing countries. According to FranceAgriMer, the share of French corn rated as good or excellent fell to 62% in the week to August 18, well below last year’s levels.

Temperatures in northern Spain and southern France were 9°C above normal in the period to August 16, according to the US Department of Agriculture. This has led to a significant reduction in expected corn yields and quality. Dry weather is also damaging crops in Bulgaria, where corn and sunflower yields could fall to their lowest levels in decades. These weather conditions pose significant challenges for farmers in the region.

The European Union is expected to import 21 million tonnes of corn in the 2025-26 season, according to the International Grains Council. This would make the EU the world’s second-largest buyer of corn for the second year in a row as China, traditionally a major importer of the feed grain, faces falling demand. The availability of cheap corn from Brazil and the United States, where record harvests are expected, is helping to boost imports to Europe.

Corn prices on the Chicago Board of Trade fell to their lowest level in 12 months in early August on expectations of large harvests in Brazil and the United States. Meanwhile, corn futures in Paris rose 0.8% on Friday, reaching their highest level in more than a week, although the rise later slowed somewhat. According to Matt Darrach, a grain and oilseeds analyst at Kpler, corn from Brazil and the United States is competitive on the global market, which is driving import demand.

EU corn production is under stress due to weather conditions, which is likely to further support imports. Buyers are looking to offset potential crop shortfalls with available and cheap supplies from other regions. Analysts say favorable global prices make imports an attractive option to cover the EU’s feed grain needs.

Harvesting in Europe is expected to accelerate in the fall as weather forecasts predict cooler and wetter weather in the coming days. Vaisala meteorologist Donald Keeney says rain in the south-central regions will help replenish moisture for late-growing corn and sunflowers. However, drought conditions are set to persist in the UK, northern Germany, southern Romania, Bulgaria and Spain, which could further complicate the harvest situation.

This situation highlights the vulnerability of European agriculture to climate change and its growing dependence on imports to ensure a stable supply of grain. With global corn prices rising and competition intensifying in the market, EU countries are forced to adapt to new realities to maintain food security and stability in the agricultural sector.

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