Strategic Grain expects the EU's grain acreage to decrease by 1.8% in 2010
According to the monthly report released by Strategic Grain Company on November 12th, the grain acreage harvested by the European Union in 2010 will be 1.8% lower than the previous year, to 56.97 million hectares, mainly due to declining planting profits and farmers applying for more arable land to enter fallow projects.
The biggest decline was the planting area of barley. The planting area of barley in the European Union is expected to decrease by 6% over the previous year to 13.09 million hectares.
The planting area of corn will also be reduced by 2% from the previous year to 8.33 million hectares.
However, the planting area of soft wheat will increase by 1% over the previous year to 22.86 million hectares in 2010. The planting area of oilseeds will also increase.
The increase in wheat acreage will further increase the huge stock of wheat in the European Union. Strategic Grain expects the EU's wheat stockpile to exceed 6 million tons.
Strategic Grain said that although the demand for wheat in the ethanol industry will increase and the use of wheat in the feed industry will increase, the situation of EU wheat in 2010 / 11 will still be poor.
Strategic Grain left the 2009 EU grain production forecast unchanged at 290 million tons, a decrease of 22 million tons from the previous year.
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