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Severe Drought to Push Germany to be Net Grain Importer

A period of severe drought is expected to drive Germany to a significant increase in soybean and soybean meal imports, pushing the country to become a net grain importer in the near future, according to the latest Global Agricultural Information Network (GAIN) report issued by the USDA on September 24.

Total grain production (excluding corn) estimates for 2018 from the German Ministry for Food and Agriculture fall at 34.5 million tons, down from 41 million tons last year. Meanwhile, the country is expected to see its corn harvest cut in half compared to a year ago, reducing output to the lowest since 1994.

Competitive prices will see the U.S. in place to become the top provider of soybeans to Germany as the country cuts the use of domestic grains and rapeseed meal in feed ratios for the rest of this year into the first half of next year.

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