Threats to bulk production and shipment of grain across the globe have been brought into sharp relief after a negative assessment of weather conditions and their impact on the crop by Archer Daniels Midland (ADM) Agriculture in the United Kingdom.
According to Jonathan Lane, head of grain trading at ADM, the food source is experiencing extreme strain because of hot weather conditions across the northern plains of the United States, stretching into the Canadian prairies.
Out east in the European Union, especially in Germany where excessive rain is threatening the quality of grain crops, the final quality of the food source’s production is in serious question.
It included, Lane told a bulk material news source in the UK, grain production west of the Black Sea region.
With output in South America’s two biggest grain producers, Brazil and Argentina, also not what it should be, ADM believes it could place additional strain on crop yields in the US.
Data coming out of the US Department of Agriculture also underpins the ADM’s muted assessment, with lower-than-expected crop yield estimates suggesting the need for new market alternatives.
This comes after Russian wheat crop farmers also reported a decreased harvest across the board.
France seems to be the only beacon of hope for good, even above-average grain production at the moment.
However, according to ADM’s findings, global demand for the crop is heading for a position of stress given the weight that adverse weather conditions is placing on grain farmers in key areas of production across the world.