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Concern is growing that lack of rain in some areas of Germany could damage grain plantings but the overall harvest outlook still remains good, analysts said.
"No damage has yet occurred but there are some regions which urgently need rain and unless some substantial rainfall comes in next couple of weeks we could see an impact on yields," one analyst said.
The problem is highly regional, with sufficient rain for grains received in the northern areas of Schleswig-Holstein, Lower Saxony and Mecklenburg Western Pomerania.
"The further south you go the more serious the problem of dryness tends to be," another analyst said. "If we get considerable amounts of rain in the next couple of weeks everything will be fine but if dryness continues at this critical period of crop development we could have problems with yields."
Areas affected in included Saxony, Hessen, Baden-Wuerttemberg and parts of Bavaria.
But overall analysts stress grain plantings generally are developing well with almost no frost damage this winter.
"Germany is still on the way to a substantially larger harvest than last year," one said.

Copyright Reuters, 2004

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