Rain & Drought Push Down Western Europe's Wheat Crop Projections - Reuters

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In France, Europe's leading wheat producer, unfavourable weather ranging from severe dryness in April to heavy rain in June have reduced the outlook for crop size and quality. The French farm ministry on Thursday cut its estimate for the country's 2007 soft wheat crop to 32.9 million tonnes, down from 34.7 million seen last month.

Others were more pessimistic. "The latest information has confirmed our estimate last week of 32.3 million tonnes," said Michel Portier, analyst at Agritel, referring to the lowest published estimate this year. French analysts have also expressed concerns over quality, especially about a decline in specific weight to less than the standard 76 kg/hectolitre which would hit flour yields.

GERMAN AND BRITISH CROPS DOWN

In Germany, Europe's second largest wheat grower, widespread rain just as harvesting started brought fears of quality damage. Analysts said they expected Germany's wheat crop to be at least ten percent below 2006's 22.3 million tonnes. Estimates ranged between 19.8 to 20.1 million tonnes, although most expected a crop under 20 million tonnes.

"Wheat harvesting should be finished this week as weather has improved," one German analyst said. "It seems certain that a larger proportion of the crop than normal will only reach animal feed standards but the quality damage varies."

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