Weather takes its toll on wheat crop production

Figures from the European Commission suggest poor weather conditions have taken a toll on the wheat crop. forecasts, it says it suspects UK production to be hit as badly as France. Estimates for the rapeseed crop have been raised, but only after months of pessimistic forecasts and the output will still be well down on last year.

The World Trade Organisation has reported an increase in global food prices, for the second month in a row.

However the increase is not across all commodities, and beef prices in particular remain in the doldrums.

The overall increase was a modest 1.2%, but dairy prices rose by 3.5% from June to July, leaving them ahead of where they were in July 2019.

Global beef prices fell by 1.8% from June to July, and were down by over 9% against July 2019.

This reflected reduced import demand, while after five months of falling prices poultry prices recovered. Sheep meat remained static, after a rise in June, reflecting poor demand. Cereal prices were largely unchanged.

The plunge of the UK into a recession that breaks all records has added to the pressure for a Brexit deal to allow trade to continue with the EU-27.

While officials, sticking to the existing game plan, are failing to make progress, the autumn will almost certainly bring a greater involvement by heads of state to break the deadlock.

Meanwhile European trade associations from agriculture and food are urging the EU and US to end their trade war over aircraft subsidies.

They want tariffs lifted on products such as whisky, wine and meat, on grounds that these have nothing to do with the original dispute between Airbus and Boeing.

Picture: Shutterstock. A wet autumn and winter along with a dry spring has seen wheat production numbers drop.