At 253 million metric tons, the 2007-2009 European Union would see about a 2.2% drop over last year's grain output. That's according to data reported Monday by Dow Jones from Toepfer International, a Hamburg-based trading house.
The report forecasts EU soft wheat output at 113.3 million tons, which is down 2.7% from last year. Durum output slipped 7.5% to 7.5 million tons and EU corn production is set at 44.8 million tons, or 12% less than last season.
The report notes that falling corn output will mean higher import demand and could cause trouble as genetically modified corn is bought to fill the need. The Toepfer report says the corn can only come from Brazil, which has far less biotech corn than the U.S. Barley out put will rise 1.7% according to the report.
Alfred C. Toepfer International Gmbh serves as the European trading group for Archer Daniels Midland Co.
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