The Rural Voice, 1987-12, Page 16REABURN ELECTRONICS LTD.
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14 THE RURAL VOICE
MARKET UPDATE
FIELD CROP
OVERVIEW
Harvesting is nearing completion
throughout the Northern Hemisphere.
Unfavorable weather delayed field
operations in the Soviet Union and
Western Europe, raising concerns about
the quality of grain crops.
The Soviet grain crop is forecast to
reach 210 million tons for the second
year in a row. Good summer weather
and an increased application of inten-
sive technology are expected to keep
yields high, off -setting the effects of
poor planting and harvest weather.
Soviet expectations of a large grain
crop are reflected in reduced 1987/88
imports. Preliminary reports indicate
that the USSR has once again not fully
met its obligatory grain purchases from
the U.S. Under the terms of the U.S.-
USSR Grain Agreement, the Soviet
Union is required to purchase a mini-
mum of 4 million tons of wheat and corn
each. In addition, another 1 million tons
of these grains must be taken unless
limited off -setting purchases of soy-
beans or soybean meal are made in the
proportion of 1 ton of soybeans and/or
soybean meal for 2 tons of grain.
The grain harvest in northern West
European countries proceeded slowly
because of continued rains. which will
contribute to yield losses and reduce
quality. Also, harvesting delays could
retard and reduce EEC winter plantings.
World grain stocks are projected to fall
for the first time sine 1983/84 because of
a projected four per cent reduction in
1986/87 total grain output and larger
consumption. The largest year to year
decline will be in coarse grains.
COARSE GRAINS
Foreign coarse grain output is al-
most unchanged from last year in con-
trast to a 35.5 million ton decline in U.S.
production. Foreign barley output will
rise 8 million tons, with the USSR ac-
counting for virtually all the increase.
Despite drops in Eastern Europe, the
EEC, and Thailand, foreign corn pro-
duction is expected to rise slightly.
The 1987/88 outlook for total globa I
coarse grain exports is flat. Wheat is in
ample supply so competition will be
sharp. World barley trade will fall for
the first time since 1982/83 because of
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