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Europe
Unfavorable weather conditions in the United Kingdom are negatively impacting the country’s sugar production
Forecasts for sugar production in the United Kingdom for the 2022/2023 season have never been particularly optimistic, but have recently been revised further downward due to severe weather conditions. Farmers say that low temperatures have damaged some of the sugar beets currently in the ground, which will certainly translate into lower sugar production. Not particularly sweet news, right?
France sees an increase in soft wheat exports outside the European Union
France, Europe’s largest wheat exporter, has seen a significant increase in soft wheat sales in recent months. The main reason for this is growing demand from North African countries. France’s position is also strengthened by the rising cost of insurance of shipments from Russia, the world’s largest wheat exporter.
Lower wheat and corn harvests in Ukraine
2023 will be the second consecutive year in which Ukraine’s wheat and corn yields will decline. Current forecasts predict production of 18 million tons of corn and 16 million tons of wheat, but this is a relatively optimistic option, and extremely unfavorable weather conditions could lower production levels even further. The main reasons for the decrease are, of course, the restrictions on cultivation related to the ongoing armed conflict. In the current situation, many Ukrainian farmers are struggling to survive.
The Americas
The corn situation between Mexico and the United States remains tense
The issue of regulation, including a ban on the importation of genetically modified corn into Mexico, has been in the news for several weeks. Farmers from the United States are very concerned about the situation, as many of them have sold a significant portion of their crop to Mexico and have never grown a conventional corn variety. Switching to it, they say, would require significant investment, so they are realistically concerned about their future. Finding a solution to this situation that satisfies all parties is definitely not a can of corn.
California’s weather patterns are changing dynamically
The state, which has struggled with a devastating drought for the past 3 years, is finally experiencing the coveted heavy rains. Perhaps too heavy, but that remains to be seen. Still, the current weather situation gives hope that water allocations this season will be more favorable to farmers than in the past three years. Much depends on whether the drought will be a hot topic again in a few months…
Mexico has ambitious plans to reduce its corn imports
The country aims to reduce corn imports by 30% or even 40% by 2024. Mexico is already largely self-sufficient in white corn production. The yellow variety, used mainly for animal feed, is in most part imported from abroad, mainly from the United States. This is expected to change as early as next year. The plans are ambitious, there’s no denying that.
Asia & Oceania
China currently grows more corn than rice
According to the latest data, corn accounts for 43% of China’s grain crop, while rice accounts for 34%. However, this does not mean that corn has taken the place of rice on the plates of the Chinese. Corn is used in large quantities for livestock feed and also for ethanol fuel. Corn syrup, which is added to many processed foods, is becoming increasingly popular as well.
Australia notes record grain harvest
Australian wheat production in the 2022-23 marketing year will reach a record 37 million tons, up from 36.34 million tons the previous year. The barley crop is expected to reach 13.5 million tons, the fourth highest in history. Sorghum production is estimated at 2.9 million tons and could be the third highest ever. However, this does not change the fact that weather conditions have been unfavorable recently. Heavy rains and flooding, among other things, have affected the quality of wheat, much of which has fallen into the feed grade.
The price of wheat flour has almost doubled in Nepal
The reason for this extreme price increase is mainly due to export restrictions on staple foods imposed by India. These restrictions were introduced in May last year. The shortage of wheat flour has been strongly felt in the country and has negatively affected the production of goods such as cookies, bread, noodles and naan.
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