29.
05.18
09:37

Dry phase reduces earnings prospects

Weather outlook in a crucial time in the grain / oilseeds sector The current weather in 2018 shows its extreme side . At the beginning of the year unusually mild temperatures prevailed. In February, two cold spells followed, with sensitive frost temperatures. In mid-March, high temperatures ensured rapid growth of plant populations. April made its name honor with changing weather conditions. In May , regional (in) weather drew attention.In the northern and eastern German areas it was mostly too dry. In the two-week period that lies ahead, there are still heavy precipitations with varying regional distribution in the west . Subsequently, meteorologists prophesy a low-precipitation phase throughout Europe with very few exceptions. Especially for Central and Eastern Europe , the lack of rain could aggravate the already scarce soil water reserves. Grain and oilseeds are in the crucial grain formation phase .Too little water leads to increased Kleinörnigkeit with sensitive yield reductions. The so far still classified as average crops in Russia and Ukraine are badly affected. The previous year's record bumper harvest is getting more and more distant. Russia's hegemony in international grain exports is at stake. Also in the EU grain harvest will be cut in the near future. The growing regions in the east will be more affected than the west with sufficient water supply.With the weather forecasts one should consider that their hit probability lies between 75 to 80% . With longer-lasting forecasts, the reliability of the promised weather developments decreases. Let's hope it does not get as bad as predicted.

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