XM does not provide services to residents of the United States of America.

EU maize crop set to shrink as Romania drought overshadows rain boost in west



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EU maize crop set to shrink as Romania drought overshadows rain boost in west</title></head><body>

Romanian maize hurt by scorching heat, lack of rain

Losses in southeast Europe could push EU output down

Heavy rain that hurt wheat helps maize further west

By Gus Trompiz

PARIS, Aug 23 (Reuters) -The European Union is heading for a smaller maize crop this year after drought and heatwaves ravaged crops in Romania, offsetting a rain boost to growing conditions further west, analysts said.

Lower production could make the EU, a net maize (corn) importer, more reliant on foreign supplies this season, particularly as the bloc is also expected to reap below-average volumes of wheat and barley, which can be used for livestock feed like maize.

Forecasters have sharply cut their outlook for the upcoming EU maize crop to around 60-61 million metric tons, now below last year's output of about 63 million though above 53 million in 2022 when drought spread across Europe.

"The situation in eastern Europe is very tough like two years ago," Argus analyst Maxence Devillers said. "Western Europe is turning out okay and that is salvaging the situation compared with 2022."

Romania, which previously vied with France as the EU's biggest maize producer, has been caught up in unrelenting heat and dryness in the Black Sea region that has withered maize fields in Ukraine and Russia too.

Some analysts expect Romanian maize output to drop by around 30% from near 11 million tons last year, with Argus seeing 2024 production at 7.5 million and local firm AgroBrane at 7.7 million.

"It's quite challenging to grow corn in a furnace," AgroBrane's Gabriel Razi said, noting crops faced 40 degrees Celsius (104 degrees Fahrenheit) heat during pollination in July.

"It's one of the most challenging seasons in agronomical terms that Romanian farmers went through," he told a webinar held by Ukraine's Trend&Hedge Club.

Harsh summer weather has also hurt maize in parts of Bulgaria and Hungary, analysts said.

In France, there was uncertainty over yields after a damp spring hampered planting while the south has faced high temperatures since late July.

But favourable moisture levels, after the heavy rain that hurt the wheat crop, were keeping maize in mostly good condition. An increase in area, meanwhile, should ensure higher output in France than last year.

"In France the situation is mixed but production should be good," Devillers said, estimating the crop will rise to just over 14 million tons, slightly above the farm ministry's initial forecast.

Ample rain should underpin yields elsewhere in Europe, though reduced planting may push production down.

In Poland, crop conditions are promising but lower planting means the maize harvest could shrink 13% from last year to 7.6 million tons, said Sparks Polska analyst Wojtek Sabaranski.

Polish harvesting is set for an early start from mid-September, Sabaranski added.

In Germany, the grain maize crop will fall by 2% to 4.41 million tons, the country's farming association estimated on Thursday, compared to a much steeper 15% drop in the rain-damaged winter wheat crop.



Reporting by Gus Trompiz in Paris, Michael Hogan in Hamburg and Nigel Hunt in London; Editing by Shounak Dasgupta

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.