EU wheat production in 2020/2021 is projected down by 13.8 million tons

17.06.2020 12:15 "Agro Perspectiva" (Kyiv) — According to the report of the USDA Grain: World Markets and Trade (June 2020), EU wheat production in 2020/21 is projected down by 13.8 million tons from nearly 155 million tons the previous year.

With tighter supplies expected, EU wheat is becoming less competitive with other grains in feed rations, specifically corn and barley. Corn feed use is projected up from 62.2 million tons to 65.0 million on a larger domestic crop and robust imports. In light of large global supplies, corn is expected to be very competitive relative to feed wheat. Corn supplies are particularly abundant in Ukraine, which has a record-large crop projected and remains the principal supplier of corn to the European Union.

Barley feed use is also projected larger as supplies will be plentiful based on a second consecutive bumper crop and large carryin stocks. Considering the abundant corn and barley supplies, coupled with a smaller wheat crop, EU wheat feed and residual is projected down from 52.5 million tons to 49.5

million, which would be the lowest since 2013/14.

With less wheat needed in feed rations, the European Union is expected to continue as a major exporter of wheat despite a substantially smaller crop. EU wheat

exports are projected at 28.0 million tons, down 8.5 million from 2019/20, but still the second-largest export volume in 5 years. The European Union is projected to be the secondlargest wheat exporter in 2020/21 with Russia forecast to regain its position as top global wheat exporter.

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