French analyst raises EU grain forecast

Improved prospects for crop yields in western Europe following decent harvests prompted French analyst Strategie Grains to raise its forecasts for the bloc's grain output in 2008 by four million tonnes. Production of all cereals would probably hit 299.7 million tonnes, it said in a statement, envisaging a 17 percent jump compared with 2007.
"This increase mainly stems from higher yield forecasts for western EU countries following very good harvest results," it said of total cereal production. Soft wheat output in the 27-nation bloc now looked likely to hit 133.9 million tonnes rather than the 131.7 million tonnes seen last month. The analysts's latest estimate suggested a 20 percent increase on 2007.