The plentiful wheat harvest worldwide increased grain reserves and put pressure on prices. Demand for wheat was also down on the year. This market situation allowed no great upward movement in prices. To this background, crop growers surveyed in Europe expect on the whole average business development in the coming 12 months.
Arable farmers surveyed in Germany reflect a less positive outlook compared with their answers in the previous year’s survey. Although dry conditions led to lower yields and poorer crop quality on a regional basis only, intensive international competition on the export markets tended to dampen business expectations. Increasing the cautious mood were again difficult sowing conditions caused by dry weather. On top of this, profitability of oilseed rape and sugar beet is under pressure and this darkens the economic outlook for these crops.
French arable farmers describe expected economic development in their businesses as average. Wheat growers drove home heavy yields of good quality and this greatly improved the situation at the start of the cropping year compared with that of the previous year. On the other hand, French exporters are engaged in sharp international competition on the export markets, where a good Ukrainian harvest in terms of both quantity and quality has increased stocks.
The expectations of crop growers in Russia are slightly lower than last year, but still basically positive. Russian farmers have harvested good yields and expanding livestock production increases domestic market demand. But increasing competition on the export markets affects Russian growers too.