(Dow Jones) -- Crop consultancy Strategie Grains Thursday cut its European Union grain production forecasts on Thursday due to lower-than-expected yields in France, Germany and elsewhere.
Strategie cut its monthly soft wheat production forecast for 2016-17 by 1.4 million metric tons to 136.5 million tons, saying the impact on yields of a cool, wet spring in much of Western Europe was worse than expected.
As well as a smaller crop, Strategie said a smaller volume of high-grade wheat due to weather damage in France, the Baltic countries and Poland will weigh on export demand. It cut its wheat exports forecast by 1 million tons to 23.7 million tons.
The barley production forecast was reduced by 0.6 million tons to 60 million tons, while corn production is expected to come in at 59.3 million tons, 1.3 million tons lower than the August forecast.
Strategie said it expects the EU's year-end wheat stocks to fall by 3.7 million tons year-over-year to 10.8 million tons.