yolowire.com – Record rainfall is threatening wheat crops in the United Kingdom (UK) and France, with potential implications for global prices and food security.
In France, Europe’s biggest wheat producer, farmers are preparing for the worst wheat harvest in more than a decade as persistent rains have washed away fields and destroyed crops.
At the same time, Britain, also one of the largest wheat producers in Europe, is experiencing limited wheat production due to heavy and persistent rain.
The result is that wheat prices across Europe could be pushed higher in coming months as shortages in Britain and France put pressure on global supplies.
According to media reports, prices for wheat-based products such as bread, biscuits and beer are already rising higher in both Britain and France.
Early this year, Europe’s wheat, barley and oat harvests were expected to fall by around 17% in 2024, according to analyst forecasts. Now the decline is over 30%.
The situation in Europe could lead to a worsening of food security around the world as wheat exports from Britain, France and other European countries are expected to shrink in the coming months.
At the same time, wheat farmers in the US are reeling from two years of severe drought that has damaged their crops.
According to the U.S. Department of Agriculture, U.S. farm income is expected to decline 25% annually by 2024. That would be the largest annual decline ever.
In Chicago, wheat is currently trading at $5.80 a bushel, down 16% in the past twelve months and currently at a six-week low.
