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EU Corn Output On Pace to Compete With U.S. Production

The EU corn crop for this season is projected to be 66.5 million tons - an increase over the 64.2 million tons harvested last year, according to Strategie Grain. The USDA predicts even higher EU corn output for the year at 68.3 million tons.

Given the fact that projected weather patterns are expected to be non-threatening for the balance of the season, it is believed that if forecasts hold true, the EU will be a serious competitor on the global corn market with the U.S., and if China doesn’t expand imports, prices will remain under pressure.

The reverse is true for EU wheat output, which Strategie Grain expects to see a decided decline in output for the season, coming in at 130 million tons - down significantly from last year’s 147 million tons. This decline is due to lower production expectations from France, Romania, Bulgaria, and Germany.

This could have spelled good news for the U.S., however, the U.S. is hampered on the global market by higher freight costs.

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