By Sybille de La Hamaide, Polina Devitt and Michael Hogan PARIS/MOSCOW/HAMBURG (Reuters) – Scorching temperatures have devastated wheat fields across northern Europe while a combination of dry conditions and extreme rain in the Black Sea bread basket have sunk output estimates, with fears of further damage causing prices to soar. As harvesting heads north in Germany, the European Union’s second largest wheat producer behind France, more evidence of serious damage to crops is emerging – prompting observers to cut crop estimates repeatedly for the 28-member bloc. “The situation is catastrophic in northern Europe,” Strategie Grains head analyst Andree Defois said. The consultancy last week cut its forecast for this year’s soft wheat harvest in the EU, collectively the world’s largest wheat grower, below 130 million tonnes, a six-year low, and Defois said it could revise the estimate again. France, the EU’s top producer, also experienced extreme weather, prompting forecasters to cut their crop estimates to around 34 million tonnes from 36.6 million harvested last year. Sweltering heat also dented wheat in Scandinavia and other Baltic states with Sweden’s wheat crop seen falling 40 percent on the year. And in Britain, where drought-hit wheat crops are expected to fall to a five-year low, farmers were anxiously awaiting results as the harvest moved north. MEMORIES OF 2007/08 European wheat prices have surged 15 percent in the past three weeks, hitting their highest since late 2014 on Wednesday at 208.50 euros ($243.50) per tonne as worries mounted about global wheat supplies. A bottom… [Read full story]
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