Wheat Shortages

Due to unfavorable weather conditions, France notes a decline of 25% of wheat production which equals about 21 million MT in 2020. According to the report made by the U.S. Department of Agriculture predicted exports will also decline. The forecast predicts fall from 23 million MT in 2019 down to 13-15 million this year. The soft wheat crop is estimated to be the third smallest in history. The country exports mainly to Morocco, Egypt, and Algeria.

One of the main reason for this unfortunate situation is are heavy rains that took place in autumn 2019 that precluded sowing winter wheat in suitable conditions. Moreover, the mild winter did not stop the pest infestations and the Governmental ban on certain pesticides impacted the situation. After that, dry spring led to limited moisture which is needed for the plant to reach its full size and weight. The weather influenced also barley crops.

A similar situation takes place in Ukraine, Romania, Russia, and Bulgaria. The problem already affected prices. The issue won’t go unnoticed by feed producers.