By Ed Ballard
French agriculture research firm ODA Groupe cuts its forecast for France’s 2016 soft wheat harvest by 2.2 million metric tons to 28.2 million tons, reflecting the crop damage caused by heavy spring floods.
If ODA’s forecast is correct, France’s harvest will be around 30% smaller than last year’s record crop of over 40 million tons. Other agencies have issued forecasts of 30-32 million tons.
ODA, which attributed the cut to a deterioration in crop conditions in North-East France, also estimated that the devastated harvest will result in a 3 billion euros ($3.35 billion) hit to France’s trade balance.
European milling wheat futures climbed 0.6% to EUR168.60 in late trading Monday, and have risen 10% in the last month as expectations of this year’s crop have contracted.
Write to Ed Ballard at ed.ballard[a]wsj.com
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