An unprecedented heatwave across Europe is threatening to send the continent’s food security even further into peril.
Europe’s major crop-producing regions are bracing for a potentially poor harvest this year, as temperatures in some places soared to nearly 50 degrees Celcius. The record heatwave threatens to adversely affect this year’s yield, particularly in Portugal, Spain, France, and Greece, where flowering corn crops may not produce as many kernels. Although the EU typically imports the majority of its corn for livestock feed from Ukraine and Russia, the conflict between the two countries has substantially subdued this year’s shipments.
With corn in short supply, crop prices have exploded even higher. According to Bloomberg calculations, Paris corn futures jumped 11% in July, as trading hits an unusual record-high given the time of year. Europe’s wheat harvest also doesn’t look too promising, as France warns that its soft-wheat yield is expected to decline by about 7% this year due to the adverse heat.
Not only is the heatwave making matters worse for EU’s food security: with the ongoing war between Russia and Ukraine cutting back the amount of crop supplies bound for Europe, other major exporters have thus far failed to close the gap on supply shortages. Alternative crop producing nations such as India and Kazakhstan have reduced or completely banned grain exports, as they too, are worried about their own domestic food security.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
