EU wheat stocks at a six-year high
Europe's wheat stockpiles will probably be the largest in six years as a global glut of the grain cuts demand for the region's exports.
European Union soft-wheat inventories will jump 32pc from a year earlier to 14.5 million metric tons by the end of June, according to a forecast from the 28-nation bloc published online.
That would be the highest since the end of the 2009-10 season.
Milling-wheat futures in Paris have dropped 15pc since July 1 as concern that dry weather in Europe and the Black Sea region would damage plants shifted to an outlook for bumper crops.
Larger harvests from France to Russia will swell global wheat inventories by 4.5pc to a record 211 million tons by the end of 2015-16, the International Grains Council predicted.
"In terms of European exports, they'll be a little lower than last year so we'll end up with higher stocks," Alexandre Boy, an analyst at farm advisor Agritel in Paris, said.
"We won't have the market to ship it all out."
The EU raised its outlook for ending stocks from 10.6 million tons forecast in August as it increased the estimate for this year's usable soft-wheat crop by 2.8pc to 144.6 million tons.
The region accounts for about 20pc of global wheat production.
The majority of Irish merchants have settled on €140/t for winter barley. (Bloomberg)