European Wheat Supply Tightens On Floods, Drought - Reuters

[hatrack]

PARIS - Flooded fields in central Europe, a harsh Black Sea winter and low rainfall in France have dimmed the prospects for this summer's wheat crop, adding to tightening world supplies next season, analysts said on Friday.

French new crop wheat futures have rallied strongly this month as the supply/demand outlook for next season has tightened. The benchmark November position is up around five euros to above 119 euros (US$152.2) a tonne since early May as initial forecasts of a much bigger EU crop have been reined in. French analyst Strategie Grains this week cut its forecast for European Union grain output next season by two million tonnes to just under 265 million, three percent up on 2005.

Wheat was trimmed by 1.5 million tonnes to 118.8 million, still up 3 percent or some four million tonnes on 2005.

"In central Europe, wheat yields have been revised down to take account of the impact of excess water levels in the soil caused by melting snow and high precipitation levels this spring," it said in its monthly report for May.

EDIT

http://www.planetark.org/dailynewsstory.cfm/newsid/36473/story.htm

[cliss]

1. Get ready for upcoming high prices.

This should cause a spike in wheat prices. We're already seeing an intense demand for sugar. China is pushing the prices through the roof.

On top of that, oil prices are spiraling upward. Agriculture is intensely dependent on petroleum - so there will be a double push on prices.

Africa and other poor nations will get stuck this time.

[kestrel91316]

2. This is why climate change matters to us all..........

unless, of course, one need not eat (like Cheney, the UNDEAD).

[depakid]

3. Friends in Britain tell me that they got drought notices

last week with respect to their water usage- even though it's been a bloody deluge over there. Several weeks before that, authorities were threatening that homeowners might have to use short pipes this summer.

Imagine what lazy spoiled Americans would do if they had to get fetch their water from communal pumps!

Next time one of them calls and whinges to me about the last few weeks of crappy weather, I'll be sure to remind them of the shortpipe warnings. LOL.