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USDA lowers EU corn supply outlook due to losses in France and Romania

08 December 20202 min reading

European Union (EU27 + UK) corn production for 2020/21 is estimated at 64.2 million metric tons (mmt), down 2.5 mmt (4 percent) from last year, according to the USDA.

On Tuesday, the USDA released its November Supply/Demand Report. Harvested area is estimated at 8.9 million hectares (mha), down 0.1 mha from last month, but unchanged from last year, and up 3 percent from the 5- year average. Yield is estimated at 7.23 tons per hectare (t/ha), down 2 percent from October, down 4 percent from last year, and down 1 percent from the 5-year average.

Harvest is nearly finished in the European Union, including in the largest corn producers of France and Romania, where drought has been responsible for lowering the crop in both countries this year.

In France, the crop is estimated to be down 0.6 mmt from last month to 13.8 mmt. France has a significant amount of irrigated corn in its southwest that helps mitigate yield losses. Yield is estimated at 8.83 t/ha.

Romania is the single largest contributing-member to EU corn area, but with an average yield of 4.12 t/ha, Romania has the lowest corn yield in the EU27. Among other reasons, it has a low proportion of irrigated corn and a high normal summer temperature, which can quickly deplete soil moisture. This year, drought in Romania was most prominent in its largest corn producing region in the southeast. Romania corn is estimated at 10.7 mmt, down 0.6 mmt from last month, and 10 percent below its average production level. The 2020/21 crop is estimated to be 25 percent below last year’s record crop.

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