EU's wheat reserves shrinking to 13-year low
LONDON: Europe is likely to end the wheat season with the smallest stockpiles in 13 years.
Inventories of wheat held in the European Union will probably plunge 37% to 10.1 million metric tonnes at the end of June, according to Tallage SAS, publisher of the Strategie Grains report. The combination of a poor harvest, strong consumption and higher-than-expected exports is draining stockpiles, which will probably stay low next season, the researcher said.
“We see a cocktail of factors that will be bullish for wheat this season and in 2017-18,“ Andree Defois, president of Moret sur Loing, France-based Tallage, said. “The fact that the EU situation will be in tight balance and stocks around the world are expected to decrease, especially by main exporting countries, could impact prices."
Inventories of wheat held in the European Union will probably plunge 37% to 10.1 million metric tonnes at the end of June, according to Tallage SAS, publisher of the Strategie Grains report. The combination of a poor harvest, strong consumption and higher-than-expected exports is draining stockpiles, which will probably stay low next season, the researcher said.
“We see a cocktail of factors that will be bullish for wheat this season and in 2017-18,“ Andree Defois, president of Moret sur Loing, France-based Tallage, said. “The fact that the EU situation will be in tight balance and stocks around the world are expected to decrease, especially by main exporting countries, could impact prices."