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WORLD AGRICULTURAL PRODUCTION, PART TWO

May 1997

This reports includes the weather briefs, production briefs, and commodity feature articles from the full World Agricultural Production circular, with the exception of some of the statistical tables and charts. This report draws on information from USDA's global network of agricultural attaches and counselors, official statistics of foreign governments, other foreign source materials, and results of office analysis. Estimates of U.S. acreage, yield, and production are from the USDA Agricultural Statistics Board, except where noted. This report is based on unrounded data;numbers may not add to totals because of rounding. The report reflects official USDA estimates released in the World Agricultural Supply Estimates (WASDE-326) May 12, 1997.

The report was prepared by the Production Estimates and Crop Assessment Division, FAS, AGSTOP 1045, 14th and Independence Ave., Washington, DC 20250-1045. Further information may be obtained by writing to the division, or by calling (202) 720-0888, 9516, or by FAX (202) 720-8880.

We plan to issue PART 2 of this circular every month, normally 5 working days AFTER the release of Part 1. The next issue of World Agricultural Production, Part 1, will be available electronically after 3:30 pm local time on June 13, 1997.

WEATHER BRIEFS

WESTERN EUROPE: DRY IN MARCH AND APRIL, FAVORABLY MOIST IN MAY

In March 1997, little if any precipitation occurred in Spain, Portugal, France, England, and Italy's Po Valley. Although the dryness favored rapid spring planting, moisture was insufficient for developing winter grains and emerging spring crops. Precipitation has been well-below normal in these countries since late January. Crop prospects for winter grains worsened in March in Portugal and southern Spain, where crops were in or nearing reproduction. During the first week of April 1997, dryness prevailed for the 10th consecutive week over Spain and Portugal. Persistent dryness reduced winter grain yield that were in or nearing reproduction and stressed emerging spring grain crops. This dryness extended northward into France and the United Kingdom, where the lack of moisture was beginning to stress winter wheat in the jointing stage. During April 6 - 12, only light, scattered precipitation fell in Spain and Portugal. As a result, the condition of non-irrigated winter grains continued to worsen, while dryness lowered emergence prospects for summer crops. England, France, and northern Italy remained unfavorably dry that week. Much-needed rain fell in the Iberian peninsula during the week April 13 - 19. The rain came too late to significantly improve prospects for filling winter grains in Portugal and southern Spain. However, it benefited reproductive winter grains in northern Spain, as well as spring-planted crops throughout the region. Elsewhere that week, only light, scattered showers fell in southern France, while unfavorable dryness persisted in northern France, England, and northern Italy. However, unseasonably cool weather lowered crop-water requirements. During April 20 - 26, light to moderate precipitation fell in western Europe, moistening top soils following prolonged dryness. Precipitation amounts in England, Spain, and Portugal ranged from 10 to 25 millimeters, with locally heavier amounts (25 - 40 millimeters) in central and southern Spain. Lesser amounts (2 - 12 millimeters) fell late in the week in France and northern Italy. From April 27 to May 5, light-to-moderate showers in England, France, and Italy eased prolonged dryness, improving moisture conditions for winter grain development and newly emerging spring-sown crops. Precipitation in these areas generally ranged from 4 to 25 millimeters, with timely soaking rain (25 - 20 millimeters) benefiting reproductive winter grains in Italy.

AUSTRALIA: RAIN SIGNALS START FOR WINTER GRAIN PLANTING

Rainfall was widespread across Australia's eastern winter grain growing regions during May 7 - 9, 1997. This rain provided moisture for field preparation and planting in southern Queensland, New South Wales, Victoria, and eastern South Australia. Planting of winter wheat and barley normally begin around the first of May and can continue through July. During March 1997, southeastern Australia's winter wheat and barley growing areas were dry. In Western Australia, late-March showers signaled the beginning of a 3-week wet spell in western winter grain areas. During April, the eastern winter wheat and barley areas for the most part were dry. From April 1 through April 19, Western Australia continued to receive unseasonably heavy rain with weekly rainfall exceeding normal amounts. This rainfall provided pre-planting moisture for western winter wheat and barley, as the planting window is also May through July.

PRODUCTION BRIEFS

CANADA: STATISTICS CANADA ESTIMATES PLANTED AREA

On April 30, Statistics Canada released March planting intentions of principal field crop areas for the 1997/98 season. The report indicates that wheat area is likely to be lower than in the previous year, whereas rapeseed plantings will increase. A reduction in wheat prices since last year has shifted the relative prices back in favor of rapeseed. Total-wheat intended area is put at 11.7 million hectares, down 10 percent from 1996/97. Spring wheat area is placed at 9.3 million hectares, down 11 percent, while durum wheat is put at 2.1 million hectares, up 1 percent. The price premium for durum over spring wheat remains an attraction to durum farmers. Winter wheat seedings were 0.3 million hectares, down 34 percent from 1996/97. Approximately 36, 000 hectares of winter wheat in Ontario were lost to winter-kill. Rapeseed planting is expected to total 4.7 million hectares, up 32 percent from 1996/97 seeded area. Soybeans, grown primarily in southern Ontario, are expected to be planted on 1.0 million hectares, up 14 percent from last year's seeded area. Barley planted area is expected to be 5.1 million hectares, down 4 percent; and oats planted area is expected to be 2.0 million hectares, also down 4 percent from 1996/97. Corn-for-grain seeding, however, is expected to increase 4 percent from 1996/97, it will be planted on 1.1 million hectares.

UNITED STATES: CROP CONDITIONS AND PROGRESS

General Crop Comments: April started with unseasonably cold, wet weather in most of the United States and gradually warmed and dried as the month progressed. Early-month rain and snow compounded flooding problems that already existed in the Red River Valley because of record snowfall in North Dakota, South Dakota, and Minnesota. Saturated soils delayed the start of spring wheat, barley, and oat planting and kept farmers out of fields until the end of the month. Small grain planting in the Northwest also progressed behind the 5-year average as cool, damp weather prevailed. However, conditions were ideal in the eastern Great Lakes and farmers planted oats at a faster-than-normal pace.

Cool soils and wet weather prevented farmers in the Mississippi, Tennessee, and Ohio Valleys from planting spring crops. Even though soils were still cool, planting accelerated later in the month as the soils dried in the Corn Belt. Corn planting was progressing at or near a record pace in Illinois, Indiana, and Ohio by the last week in April. Soils in Tennessee, Kentucky, Virginia, and North Carolina remained cool and wet, slowing planting the entire month. Heavy rains in the Gulf Coast States caused localized flooding and limited fieldwork. Cotton, peanut, and rice planting lagged further behind average as the month continued.

Reminiscent of 1995, below-freezing temperatures during April 11-13 damaged the winter wheat crop in the southern Plains. Farmers and agronomists were in fields evaluating the effects of the freeze, but the full extent of the damage was difficult to determine. Condition of the Kansas wheat crop dropped significantly after the freeze, but improved later as damage was found to be limited to the southern part of the State. Oklahoma and Texas farmers found more damage in their further-advanced crop. The condition of the crop in both States declined significantly after the freeze.

An area extending from Florida northward to North Carolina, started out dry, then turned wet. Winter wheat developed rapidly and planting of spring crops progressed ahead of the normal pace. At mid-month, farmers stopped planting spring crops because soils were too dry. The winter wheat condition in Georgia declined as the crop became stressed. Beneficial moisture finally fell at the end of the month. Cotton planting progressed well in California and Arizona as these were the only States to record above-normal temperatures for April.

FORMER SOVIET UNION: WEATHER AND CROP DEVELOPMENTS

In April, weather conditions favored crop development over most of the former Soviet Union west of the Urals. Above-normal precipitation fell over Ukraine, Russia, Belarus, and the Baltics. Well-above-normal precipitation occurred in eastern Ukraine and parts of Russia (North Caucasus Region, Volga Valley, and Volga Vyatsk Regions), providing ample soil moisture for early spring crop growth. However, cool, damp weather in eastern Ukraine and southern Russia slowed spring grain planting. Unseasonably cool weather persisted in most areas during April, slowing development of winter grains. By month's end, crop progress for winter grains ranged from greening in northern areas to jointing in southern Ukraine and southern Russia. Crop development for winter grains ranged from 1 to 3 weeks behind normal in most areas. Since early May, a warming trend and generally dry weather in Ukraine and Russia promoted winter grain development and favored spring grain planting. Reports as of May 5 indicated spring grain planting was progressing ahead of last year's delayed pace in Ukraine and Russia. However, corn and sunflower planting was progressing slowly.

In crop areas east of the Urals, spring grain planting usually begins in May. In April, unusually warm weather accompanied periodic dryness, helping early season fieldwork. Moisture accumulations since last fall have been near-normal in the Urals (Russia) and western Kazakstan, and below normal in most of Western Siberia (Russia) and both central and eastern Kazakstan. Tom Puterbaugh 720-2012 (May 1997).

FEATURE COMMODITY ARTICLES

WORLD CENTRIFUGAL SUGAR PRODUCTION

The preliminary 1997/98 forecast for world centrifugal sugar production is a record 122.4 million tons (raw value), virtually unchanged from the revised 1996/97 estimate of 122.3 million. Sugar produced from sugarcane is forecast at 86.0 million tons, up 1 percent from last year. Sugar processed from sugarbeets is forecast at 36.4 million tons, down 3 percent from last season and 11 percent less than the record 41.1 million produced in 1990/91.

European Union (EU-15): The European Union's 1997/98 sugar production forecast of 17.4 million tons is down 4 percent from last season. All major sugar-producing member states are projecting lower sugar output in 1997/98 except Italy, where production is forecast to remain stable at 1.6 million tons. The European Union accounts for 48 percent of the world's production of beet sugar.

Brazil: Sugar production for 1997/98 is forecast at an all-time high of 14.8 million tons, up marginally from last season because of record cane production and favorable weather. For the 1997/98 season, Brazil is the world's single largest producer of centrifugal sugar.

India: Sugar production for 1997/98 is projected at 13.6 million tons, down 7 percent from last season due to a 6-percent reduction in the volume of cane cut specifically for centrifugal sugar and slightly lower yields. Sugarcane and sugar production are projected to continue trending downward as ongoing delays in producer payments causes growers to increasingly shift away from cane production and use fewer inputs. These developments, coupled with expanding production of alternative sweeteners, has resulted in a 25-percent reduction in centrifugal sugar production since the record outturn of 18.2 million tons in 1995/96.

China: Sugar production in China for 1997/98 is forecast at 7.2 million tons, up 1 percent from last season based on projections of increased production of both beet and cane sugar. Approximately 80 percent of China's sugar production comes from sugarcane. Sugarcane area is forecast to increase slightly in 1997/98 due to continued expansion in Guangxi and Yunnan Provinces.

Thailand: Sugar production for 1997/98 is forecast at a record 6.4 million tons, up 2 percent from 1996/97. The increase reflects continuing expansion of the area planted to cane in the northeast part of the country where farmers are increasingly switching from cassava to sugarcane.

Australia: The sugar production forecast for 1997/98 indicates a record outturn of 5.6 million tons, up 3 percent from last season due to an increase in land assignments. Harvested area in 1997/98 is expected to exceed the 1996/97 area by 10,000 hectares for a total of 412,000.

Mexico: Sugar production for 1997/98 is forecast at an all-time high of 4.8 million tons, 2 percent greater than the previous record of 4.7 million set in 1996/97. Although cane area is essentially unchanged from last year, cane yields are expected to be higher due to exceptionally favorable weather. The current projection pegs the average yield at 73.7 tons per hectare for the 1997/98 crop, up from 69.9 tons per hectare in 1996/97.

The 1996/97 estimate for world sugar production has been revised to 122.3 million tons, down 1.7 million from the March 1997 estimate of 124.0 million. The reduction is mainly due to decreases in the following countries: India, down 914,000 tons to 14.7 million; Indonesia, down 355,000 tons to 2.1 million; Pakistan, down 230,000 tons, to 2.4 million; and Cuba, down 200,000 tons to 4.4 million.

Frank Hokana, Sugar Chairperson
Phone: (202) 720-0875
E-mail: hokana@fas.usda.gov.




               WORLD CENTRIFUGAL SUGAR PRODUCTION 1/
                        (1,000 Metric tons)


                           1994/95    1995/96    1996/97    1997/98 2/

    NORTH AMERICA
    Canada                     171        151        145        115
    Mexico                   4,556      4,660      4,670      4,770
    United States 3/ 4/      7,194      6,686      6,532      6,804
      Total                 11,921     11,497     11,347     11,689

    SOUTH AMERICA
    Argentina                1,180      1,590      1,380      1,640
    Bolivia                    270        265        265        265
    Brazil                  12,500     13,700     14,650     14,800
    Chile                      505        598        473        418
    Colombia                 2,071      2,002      2,044      2,045
    Ecuador                    339        373        451        466
    Guyana                     254        280        288        290
    Paraguay                    95        126        110        110
    Peru                       641        641        610        670
    Surinam                      1          1          1          1
    Uruguay                     25         25         25         25
    Venezuela                  530        550        560        570
      Total                 18,411     20,151     20,857     21,300

    CENTRAL AMERICA
    Belize                     105        110        110        110
    Costa Rica                 331        353        355        370
    El Salvador                312        310        389        414
    Guatemala                1,333      1,334      1,442      1,520
    Honduras                   214        235        264        269
    Nicaragua                  250        301        358        358
    Panama                     135        159        178        180
      Total                  2,680      2,802      3,096      3,221

    CARIBBEAN
    Barbados                    40         60         65         65
    Cuba                     3,300      4,450      4,400      4,500
    Dominican Republic         482        590        655        630
    Guadeloupe                  56         53         55         55
    Haiti                        0         10         10         10
    Jamaica                    212        238        240        242
    Martinique                   7          5          5          5
    St. Kitts & Nevis           20         20         20         20
    Trinidad & Tobago          117        118        122        126
      Total                  4,234      5,544      5,572      5,653

    EUROPEAN UNION
    Austria                    438        482        537        478
    Belgium-Luxembourg         945        965      1,036        985
    Denmark                    487        470        548        507
    Finland                    167        176        143        165
    France 5/                4,363      4,564      4,594      4,534
    Germany                  3,991      4,159      4,558      4,331

    Greece                     277        312        288        362
    Ireland                    232        241        247        220
    Italy                    1,622      1,621      1,561      1,565
    Netherlands              1,050      1,074      1,125      1,087
    Portugal                     4          5          3         30
    Spain                    1,214      1,193      1,332      1,205
    Sweden                     370        387        433        440
    United Kingdom           1,373      1,322      1,608      1,441
      Total                 16,533     16,971     18,013     17,350

    OTHER WESTERN EUROPE

    Switzerland                128        135        200        180

    EASTERN EUROPE
    Albania                     10         10         10         10
    Bulgaria                    13         15          9          9
    Czech Republic             375        477        610        470
    Hungary                    425        484        490        480
    Poland                   1,492      1,714      2,497      1,900
    Romania                    212        270        300        315
    Slovakia                   130        145        246        246
    Former Yugoslavia 7/       340        242        409        280
      Total                  2,997      3,357      4,571      3,710

    FSU-12 
    Belarus                    107        152        140        140
    Kazakstan                   60         50         65         65
    Kyrgyzstan                  11         15         15         15
    Moldova                    160        190        190        190
    Russia                   1,655      2,060      1,750      1,800
    Ukraine                  3,600      3,800      2,900      2,850
      Total                  5,593      6,267      5,060      5,060


    BALTIC STATES
    Latvia                      30         35         35         35
    Lithuania                   50         80         70         70
      Total                     80        115        105        105

    SUB-SAHARAN AFRICA
    Angola                      35         35         35         35
    Benin                        5          5          5          5
    Burkina                     20         20         20         20
    Burundi                     15         15         15         15
    Cameroon                    60         60         60         60
    Chad                        20         20         20         20
    Congo (Brazzaville)         30         35         35         35
    Cote d' Ivoire             150        130        150        150
    Ethiopia                   200        200        170        170
    Gabon                       20         20         20         20
    Ghana                        5          5          5          5
    Guinea                      25         25         25         25
    Kenya                      302        386        388        410
    Madagascar                  80         80         80         80
    Malawi                     200        200        200        200
    Mali                        20         20         20         20
    Mauritius                  532        572        625        630
    Mozambique                  20         30         30         30
    Nigeria                     40         30         15         16
    Reunion                    165        209        229        229
    Rwanda                       5          5          5          5
    Senegal                     90         90         90         90
    Sierra Leone                 7          7          7          7
    Somalia                     30         30         30         30
    South Africa             1,770      1,769      2,408      2,500
    Swaziland                  495        447        502        467
    Tanzania                   135        130        110        110
    Togo                         5          5          5          5
    Uganda                      50         75         90         90
    Zaire                       83         85         90         90
    Zambia                     155        160        170        170
    Zimbabwe                   524        534        337        604
      Total                  5,293      5,434      5,991      6,343


    Egypt                    1,088      1,092      1,184      1,225
    Morocco                    470        436        438        433
    Sudan                      470        500        500        500
    Tunisia                     26         30         35         35
      Total                  2,064      2,068      2,167      2,203
    MIDDLE EAST
    Iran                       900        940        700        700
    Iraq                        12         12         12         12
    Lebanon                     18         25         30         30
    Syria                      115        115        109        115
    Turkey                   1,678      1,375      2,025      2,200
      Total                  2,723      2,467      2,876      3,057

    OTHER ASIA
    Afghanistan                 10         10         10         10
    Bangladesh                 290        200        150        150
    Burma                       60         60         60         60
    China                    5,900      6,686      7,085      7,175
    India 6/                16,410     18,225     14,686     13,650
    Indonesia                2,450      2,090      2,095      2,150
    Japan                      817        901        765        870
    Malaysia                   102        105        108        110
    Nepal                       45         45         45         45
    Pakistan                 3,212      2,643      2,370      2,960
    Philippines              1,647      1,787      1,800      1,800
    Sri Lanka                   60         60         60         60
    Taiwan                     441        392        340        330
    Thailand                 5,448      6,223      6,255      6,360
    Vietnam                    450        535        600        600
      Total                 37,342     39,962     36,429     36,330

    OCEANIA
    Australia                5,196      5,049      5,491      5,650
    Fiji                       535        481        470        470
    Papua New Guinea            35         35         35         35
      Total                  5,766      5,565      5,996      6,155

    WORLD TOTAL            115,765    122,335    122,280    122,356

1/ National crop years. About one-half are on a September/August basis. Crop years for Southern Hemisphere countries begin prior to September. Factors for converting from refined to raw value sugar are 1.07 for cane sugar, 1.07 for U.S. beet sugar, and 1.087 for beet sugar in other countries.

2/ Forecast.

3/ Preliminary.

4/ United States data include continental beet and cane and Hawaii cane sugar, and Puerto Rico cane sugar.

5/ French data exclude production of cane sugar in Guadeloupe, Martinique, and Reunion which are listed separately.

6/ Indian data include production of Khandsari sugar, a native type, semi- white centrifugal sugar. Estimated output of Khandsari sugar in thousands of tons (raw value equivalent) is as follows: 1994/95- 740; 1995/96 - 620; 1996/97 - 770; 1997/98 - 800.

7/ Includes all 6 republics of the Former Yugoslavia.

MAY 1997 PRODUCTION ESTIMATES AND CROP ASSESSMENT DIV., FAS, USDA


                               SUGARBEET AREA, YIELD, AND PRODUCTION
                                            World and Selected Count



                       AREA        BEET    SUGARBEET    RAW      RECOVERY       SUGAR
    COUNTRY/YEAR       HARVESTED   YIELD   PRODUCTION   SUGAR     RATE          YIELD

                      1,000 Ha     MT/H     1,000 MT    1,000 MT  Percent       MT/Ha

    NORTH AMERICA
    United States 2/
      1995/96              575     44.3      25,460     3,553      14.0          6.18
      1996/97              535     45.1      24,104     3,629      15.1          6.78
      1997/98 MAY          577     45.3      26,134     3,901      14.9          6.76

    EUROPEAN UNION
    Austria
      1995/96               52     55.5       2,885       482      16.7          9.27
      1996/97               52     60.2       3,131       537      17.2         10.33
      1997/98 MAY           51     54.9       2,800       478      17.1          9.37

    Belgium-Luxembourg
      1995/96              104     60.5       6,291       965      15.3          9.28
      1996/97              103     59.2       6,100     1,036      17.0         10.06
      1997/98 MAY          103     58.3       6,000       985      16.4          9.56

    Denmark
      1995/96               67     44.6       2,985       470      15.7          7.01
      1996/97               68     51.5       3,500       548      15.7          8.06
      1997/98 MAY           68     50.0       3,400       507      14.9          7.46

    France
      1995/96              429     58.6      25,121     4,564      18.2         10.64
      1996/97              422     57.8      24,400     4,594      18.8         10.89
      1997/98 MAY          420     58.3      24,500     4,534      18.5         10.80

    Germany
      1995/96              519     50.2      26,049     4,159      16.0          8.01
      1996/97              514     52.5      27,000     4,558      16.9          8.87
      1997/98 MAY          512     51.8      26,500     4,331      16.3          8.46

    Greece
      1995/96               42     61.0       2,561       312      12.2          7.43
      1996/97               40     59.5       2,380       288      12.1          7.20
      1997/98 MAY           50     60.0       3,000       362      12.1          7.24

    Ireland
      1995/96               35     44.2       1,547       241      15.6          6.89
      1996/97               34     41.8       1,420       247      17.4          7.26
      1997/98 MAY           32     40.6       1,300       220      16.9          6.88

    Italy
      1995/96              285     45.4      12,932     1,621      12.5          5.69
      1996/97              248     45.0      11,150     1,561      14.0          6.29
      1997/98 MAY          275     45.5      12,500     1,565      12.5          5.69

    Netherlands
      1995/96              116     55.6       6,449     1,074      16.7          9.26
      1996/97              116     58.0       6,728     1,125      16.7          9.70
      1997/98 MAY          116     56.0       6,500     1,087      16.7          9.37

    Portugal
      1995/96                1     80.0          80         5       6.3          5.00
      1996/97                1     55.0          55         3       5.5          3.00
      1997/98 MAY            4     50.0         200        30      15.0          7.50

    Spain
      1995/96              173     43.1       7,450     1,189      16.0          6.87
      1996/97              160     48.1       7,700     1,323      17.2          8.27
      1997/98 MAY          151     45.0       6,800     1,196      17.6          7.92

    United Kingdom 
      1995/96              170     49.2       8,360     1,322      15.8          7.78
      1996/97              170     49.6       8,432     1,608      19.1          9.46
      1997/98 MAY          170     49.4       8,400     1,441      17.2          8.48

    Total European Union
      1995/96            2,085     51.0     106,298    16,967      16.0          8.14
      1996/97            2,021     52.4     105,896    18,004      17.0          8.91
      1997/98 MAY        2,046     51.7     105,800    17,341      16.4          8.48


    EAST EUROPE
    Albania
      1995/96                7     21.4         150        10       6.7          1.43
      1996/97                7     21.4         150        10       6.7          1.43
      1997/98 MAY            7     21.4         150        10       6.7          1.43

    Bulgaria
      1995/96                9     15.0         135        15      11.1          1.67
      1996/97                8     17.5         140         9       6.4          1.13
      1997/98 MAY            8      8.8          70         9      12.9          1.13

    Czech Republic 
      1995/96               93     39.9       3,712       477      12.9          5.13
      1996/97              104     41.5       4,316       610      14.1          5.87
      1997/98 MAY           90     38.0       3,420       470      13.7          5.22

    Hungary
      1995/96              122     36.6       4,460       484      10.9          3.97
      1996/97              118     39.7       4,687       490      10.5          4.15
      1997/98 MAY          120     37.5       4,500       480      10.7          4.00

    Poland
      1995/96              384     34.7      13,309     1,714      12.9          4.46
      1996/97              451     38.7      17,460     2,497      14.3          5.54
      1997/98 MAY          400     35.0      14,000     1,900      13.6          4.75

    Romania
      1995/96              133     20.0       2,655       270      10.2          2.03
      1996/97              135     20.3       2,735       300      11.0          2.22
      1997/98 MAY          140     18.6       2,600       315      12.1          2.25

    Slovakia
      1995/96               35     33.6       1,176       145      12.3          4.14
      1996/97               42     42.4       1,780       246      13.8          5.86
      1997/98 MAY           42     42.4       1,780       246      13.8          5.86

    Yugoslavia 3/
      1995/96               94     25.8       2,425       242      10.0          2.57
      1996/97              106     35.0       3,710       409      11.0          3.86
      1997/98 MAY           91     28.3       2,575       280      10.9          3.08

    Total Eastern Europe

      1995/96              877     32.0      28,022     3,357      12.0          3.83
      1996/97              971     36.0      34,978     4,571      13.1          4.71
      1997/98 MAY          898     32.4      29,095     3,710      12.8          4.13

    FSU-12
    Belarus
      1995/96               55     21.3       1,172       152      13.0          2.76
      1996/97               58     19.0       1,100       140      12.7          2.41
      1997/98 MAY           58     19.0       1,100       140      12.7          2.41

    Kazakstan
      1995/96               45     15.6         700        50       7.1          1.11
      1996/97               50     12.0         600        65      10.8          1.30
      1997/98 MAY           50     12.0         600        65      10.8          1.30

    FSU - 12
    Kyrgyzstan
      1995/96               12     13.3         160        15       9.4          1.25
      1996/97               12     17.9         215        15       7.0          1.25
      1997/98 MAY           12     17.0         204        15       7.4          1.25

    Moldova
      1995/96               74     25.9       1,913       190       9.9          2.57
      1996/97               75     24.0       1,800       190      10.6          2.53
      1997/98 MAY           75     24.0       1,800       190      10.6          2.53

    Russia
      1995/96            1,085     17.6      19,110     2,060      10.8          1.90
      1996/97            1,013     16.3      16,500     1,750      10.6          1.73
      1997/98 MAY          980     17.3      17,000     1,800      10.6          1.84

    Ukraine
      1995/96            1,448     19.3      28,000     3,800      13.6          2.62
      1996/97            1,390     18.3      25,500     2,900      11.4          2.09
      1997/98 MAY        1,300     19.5      25,400     2,850      11.2          2.19

    Total FSU-12
      1995/96            2,719     18.8      51,055     6,267      12.3          2.30
      1996/97            2,598     17.6      45,715     5,060      11.1          1.95
      1997/98 MAY        2,475     18.6      46,104     5,060      11.0          2.04
    BALTICS
    Latvia
      1995/96               20     15.0         300        35      11.7          1.75
      1996/97               20     15.0         300        35      11.7          1.75
      1997/98 MAY           20     15.0         300        35      11.7          1.75

    Lithuania
      1995/96               32     25.9         830        80       9.6          2.50
      1996/97               32     25.0         800        70       8.8          2.19
      1997/98 MAY           32     25.0         800        70       8.8          2.19

    Total Baltics
      1995/96               52     21.7       1,130       115      10.2          2.21
      1996/97               52     21.2       1,100       105       9.5          2.02
      1997/98 MAY           52     21.2       1,100       105       9.5          2.02
    
MIDDLE EAST
    Turkey
      1995/96              309     35.6      10,989     1,375      12.5          4.45
      1996/97              419     34.3      14,383     2,025      14.1          4.83
      1997/98 MAY          450     33.6      15,100     2,200      14.6          4.89

    ASIA
    China 2/
      1995/96              690     20.3      13,984     1,403      10.0         10.11
      1996/97              690     20.1      13,900     1,400      10.1          8.90
      1997/98 MAY          695     20.1      14,000     1,415      10.1          9.86
    Japan 2/
      1995/96               70     54.5       3,813       708      18.6          4.57
      1996/97               70     47.1       3,295       623      18.9          4.81
      1997/98 MAY           70     54.3       3,800       690      18.2          4.74

    Subtotal
      1995/96            7,377     32.6     240,751    33,745      14.0          4.57
      1996/97            7,356     33.1     243,371    35,417      14.6          4.81
      1997/98 MAY        7,263     33.2     241,133    34,422      14.3          4.74

    Others
      1995/96              386     41.3      15,954     2,238      14.0          5.80
      1996/97              386     40.5      15,629     2,026      13.0          5.25
      1997/98 MAY          387     39.4      15,260     1,976      12.9          5.11

    WORLD
      1995/96            7,763     33.1     256,705    35,983      14.0          4.64
      1996/97            7,742     33.5     259,000    37,443      14.5          4.84
      1997/98 MAY        7,650     33.5     256,393    36,398      14.2          4.76

1/ Refined beet sugar is converted to raw value by a factor of 1.07 in the United States and 1.087 in other countries.

2/ Produces cane sugar as well as beet sugar.

3/ Includes all 6 republics of the former Yugoslavia.

MAY 1997 PRODUCTION ESTIMATES AND CROP ASSESSMENT DIVISION, FAS USDA


                               SUGARBEET AREA, YIELD, AND PRODUCTION
                                            World and Selected Count



                       AREA        BEET    SUGARBEET    RAW      RECOVERY       SUGAR
    COUNTRY/YEAR       HARVESTED   YIELD   PRODUCTION   SUGAR     RATE          YIELD

                      1,000 Ha     MT/H     1,000 MT    1,000 MT  Percent       MT/Ha

    NORTH AMERICA
    United States 2/
      1995/96              575     44.3      25,460     3,553      14.0          6.18
      1996/97              535     45.1      24,104     3,629      15.1          6.78
      1997/98 MAY          577     45.3      26,134     3,901      14.9          6.76

    EUROPEAN UNION
    Austria
      1995/96               52     55.5       2,885       482      16.7          9.27
      1996/97               52     60.2       3,131       537      17.2         10.33
      1997/98 MAY           51     54.9       2,800       478      17.1          9.37

    Belgium-Luxembourg
      1995/96              104     60.5       6,291       965      15.3          9.28
      1996/97              103     59.2       6,100     1,036      17.0         10.06
      1997/98 MAY          103     58.3       6,000       985      16.4          9.56

    Denmark
      1995/96               67     44.6       2,985       470      15.7          7.01
      1996/97               68     51.5       3,500       548      15.7          8.06
      1997/98 MAY           68     50.0       3,400       507      14.9          7.46

    France
      1995/96              429     58.6      25,121     4,564      18.2         10.64
      1996/97              422     57.8      24,400     4,594      18.8         10.89
      1997/98 MAY          420     58.3      24,500     4,534      18.5         10.80

    Germany
      1995/96              519     50.2      26,049     4,159      16.0          8.01
      1996/97              514     52.5      27,000     4,558      16.9          8.87
      1997/98 MAY          512     51.8      26,500     4,331      16.3          8.46

    Greece
      1995/96               42     61.0       2,561       312      12.2          7.43
      1996/97               40     59.5       2,380       288      12.1          7.20
      1997/98 MAY           50     60.0       3,000       362      12.1          7.24

    Ireland
      1995/96               35     44.2       1,547       241      15.6          6.89
      1996/97               34     41.8       1,420       247      17.4          7.26
      1997/98 MAY           32     40.6       1,300       220      16.9          6.88

    Italy
      1995/96              285     45.4      12,932     1,621      12.5          5.69
      1996/97              248     45.0      11,150     1,561      14.0          6.29
      1997/98 MAY          275     45.5      12,500     1,565      12.5          5.69

    Netherlands
      1995/96              116     55.6       6,449     1,074      16.7          9.26
      1996/97              116     58.0       6,728     1,125      16.7          9.70
      1997/98 MAY          116     56.0       6,500     1,087      16.7          9.37

    Portugal
      1995/96                1     80.0          80         5       6.3          5.00
      1996/97                1     55.0          55         3       5.5          3.00
      1997/98 MAY            4     50.0         200        30      15.0          7.50

    Spain
      1995/96              173     43.1       7,450     1,189      16.0          6.87
      1996/97              160     48.1       7,700     1,323      17.2          8.27
      1997/98 MAY          151     45.0       6,800     1,196      17.6          7.92

    United Kingdom 
      1995/96              170     49.2       8,360     1,322      15.8          7.78
      1996/97              170     49.6       8,432     1,608      19.1          9.46
      1997/98 MAY          170     49.4       8,400     1,441      17.2          8.48

    Total European Union
      1995/96            2,085     51.0     106,298    16,967      16.0          8.14
      1996/97            2,021     52.4     105,896    18,004      17.0          8.91
      1997/98 MAY        2,046     51.7     105,800    17,341      16.4          8.48


    EAST EUROPE
    Albania
      1995/96                7     21.4         150        10       6.7          1.43
      1996/97                7     21.4         150        10       6.7          1.43
      1997/98 MAY            7     21.4         150        10       6.7          1.43

    Bulgaria
      1995/96                9     15.0         135        15      11.1          1.67
      1996/97                8     17.5         140         9       6.4          1.13
      1997/98 MAY            8      8.8          70         9      12.9          1.13

    Czech Republic 
      1995/96               93     39.9       3,712       477      12.9          5.13
      1996/97              104     41.5       4,316       610      14.1          5.87
      1997/98 MAY           90     38.0       3,420       470      13.7          5.22

    Hungary
      1995/96              122     36.6       4,460       484      10.9          3.97
      1996/97              118     39.7       4,687       490      10.5          4.15
      1997/98 MAY          120     37.5       4,500       480      10.7          4.00

    Poland
      1995/96              384     34.7      13,309     1,714      12.9          4.46
      1996/97              451     38.7      17,460     2,497      14.3          5.54
      1997/98 MAY          400     35.0      14,000     1,900      13.6          4.75

    Romania
      1995/96              133     20.0       2,655       270      10.2          2.03
      1996/97              135     20.3       2,735       300      11.0          2.22
      1997/98 MAY          140     18.6       2,600       315      12.1          2.25

    Slovakia
      1995/96               35     33.6       1,176       145      12.3          4.14
      1996/97               42     42.4       1,780       246      13.8          5.86
      1997/98 MAY           42     42.4       1,780       246      13.8          5.86

    Yugoslavia 3/
      1995/96               94     25.8       2,425       242      10.0          2.57
      1996/97              106     35.0       3,710       409      11.0          3.86
      1997/98 MAY           91     28.3       2,575       280      10.9          3.08

    Total Eastern Europe

      1995/96              877     32.0      28,022     3,357      12.0          3.83
      1996/97              971     36.0      34,978     4,571      13.1          4.71
      1997/98 MAY          898     32.4      29,095     3,710      12.8          4.13

    FSU-12
    Belarus
      1995/96               55     21.3       1,172       152      13.0          2.76
      1996/97               58     19.0       1,100       140      12.7          2.41
      1997/98 MAY           58     19.0       1,100       140      12.7          2.41

    Kazakstan
      1995/96               45     15.6         700        50       7.1          1.11
      1996/97               50     12.0         600        65      10.8          1.30
      1997/98 MAY           50     12.0         600        65      10.8          1.30

    FSU - 12
    Kyrgyzstan
      1995/96               12     13.3         160        15       9.4          1.25
      1996/97               12     17.9         215        15       7.0          1.25
      1997/98 MAY           12     17.0         204        15       7.4          1.25

    Moldova
      1995/96               74     25.9       1,913       190       9.9          2.57
      1996/97               75     24.0       1,800       190      10.6          2.53
      1997/98 MAY           75     24.0       1,800       190      10.6          2.53

    Russia
      1995/96            1,085     17.6      19,110     2,060      10.8          1.90
      1996/97            1,013     16.3      16,500     1,750      10.6          1.73
      1997/98 MAY          980     17.3      17,000     1,800      10.6          1.84

    Ukraine
      1995/96            1,448     19.3      28,000     3,800      13.6          2.62
      1996/97            1,390     18.3      25,500     2,900      11.4          2.09
      1997/98 MAY        1,300     19.5      25,400     2,850      11.2          2.19

    Total FSU-12
      1995/96            2,719     18.8      51,055     6,267      12.3          2.30
      1996/97            2,598     17.6      45,715     5,060      11.1          1.95
      1997/98 MAY        2,475     18.6      46,104     5,060      11.0          2.04
    BALTICS
    Latvia
      1995/96               20     15.0         300        35      11.7          1.75
      1996/97               20     15.0         300        35      11.7          1.75
      1997/98 MAY           20     15.0         300        35      11.7          1.75

    Lithuania
      1995/96               32     25.9         830        80       9.6          2.50
      1996/97               32     25.0         800        70       8.8          2.19
      1997/98 MAY           32     25.0         800        70       8.8          2.19

    Total Baltics
      1995/96               52     21.7       1,130       115      10.2          2.21   
      1996/97               52     21.2       1,100       105       9.5          2.02
      1997/98 MAY           52     21.2       1,100       105       9.5          2.02
    
MIDDLE EAST
    Turkey
      1995/96              309     35.6      10,989     1,375      12.5          4.45
      1996/97              419     34.3      14,383     2,025      14.1          4.83
      1997/98 MAY          450     33.6      15,100     2,200      14.6          4.89

    ASIA
    China 2/
      1995/96              690     20.3      13,984     1,403      10.0         10.11
      1996/97              690     20.1      13,900     1,400      10.1          8.90
      1997/98 MAY          695     20.1      14,000     1,415      10.1          9.86
    Japan 2/
      1995/96               70     54.5       3,813       708      18.6          4.57
      1996/97               70     47.1       3,295       623      18.9          4.81
      1997/98 MAY           70     54.3       3,800       690      18.2          4.74

    Subtotal
      1995/96            7,377     32.6     240,751    33,745      14.0          4.57
      1996/97            7,356     33.1     243,371    35,417      14.6          4.81
      1997/98 MAY        7,263     33.2     241,133    34,422      14.3          4.74

    Others
      1995/96              386     41.3      15,954     2,238      14.0          5.80
      1996/97              386     40.5      15,629     2,026      13.0          5.25
      1997/98 MAY          387     39.4      15,260     1,976      12.9          5.11

    WORLD
      1995/96            7,763     33.1     256,705    35,983      14.0          4.64
      1996/97            7,742     33.5     259,000    37,443      14.5          4.84
      1997/98 MAY        7,650     33.5     256,393    36,398      14.2          4.76

1/ Refined beet sugar is converted to raw value by a factor of 1.07 in the United

States and 1.087 in other countries.

2/ Produces cane sugar as well as beet sugar.

3/ Includes all 6 republics of the former Yugoslavia.

MAY 1997 PRODUCTION ESTIMATES AND CROP ASSESSMENT DIVISION, FAS USDA

1997/98 WORLD GRAIN OUTLOOK

World grain production (wheat, coarse grains, and milled rice) for 1997/98 is forecast at 1,854.6 million tons, down 4.0 million or less than 1 percent from the record level set in 1996/97. World wheat production is forecast at 578.4 million ton, down 2.8 million or less than 1 percent from last season. The wheat crops are expected to be lower in the major exporting countries--Australia, Canada, the European Union, Argentina, and the United States. In addition, the wheat crops in Northwest Africa are expected to be lower due to drought. However, wheat production is forecast to increase from the 1996/97 level in China, India, and the FSU-12.

World coarse grain production for 1997/98 is forecast at 898.9 million tons, down 1.1 million or less than 1 percent from 1996/97. Coarse grain output is projected lower in China, Canada, Argentina, Brazil, and the European Union, while higher in the United States and FSU-12.

World rice production for 1997/98 is forecast at 377.3 million tons, down 0.1 million or less than 1 percent from 1996/97. Total foreign rice production is projected marginally higher; however, the United States is forecast lower than 1996/97. Country level supply and distribution estimates will be detailed for rice on July 11, 1997.

Timothy Rocke, Grains Chairperson
Phone: (202) 720-1572
E-mail: rocke@fas.usda.gov

INITIAL OILSEEDS FORECAST FOR 1997/98

World oilseed production for 1997/98 is forecast at 273.0 million tons, up 15.2 million or 6 percent from 1996/97. Total foreign oilseed production for 1997/98 is forecast at a record 192.2 million tons, up 9.2 million or 5 percent from last year. Total oilseed production in the United States is forecast at 80.8 million tons, up 6.0 million or 8 percent from last year.

Nearly seventy percent of the increase in total foreign oilseed production for 1997/98 is due to an increase in the forecast of world soybean output to a record 72.8 million tons, up 5.1 million or 8 percent over last year. Besides soybeans, the additional increase in oilseed production over 1996/97 is projected to come primarily from an increase in rapeseed output. Canada, especially, is projected to harvest a near-record canola crop.

The projected U.S. oilseed crop for 1997/98, at a record 80.8 million tons, reflects a record soybean crop of 70.8 million tons, up 6.0 million or 9 percent above last year. Overall, the U.S. soybean supply in 1997/98 will increase 6 percent, reflecting the smallest carryin stocks since the early 1970s. U.S. soybean area in 1997/98 is projected up 2.1 million hectares, the highest since 1982/83. Yield is forecast above average at 2.61 metric tons per hectare, second only to the record 2.78 tons in 1994/95.

With a projected 15.2 million-ton gain in world oilseed production and a total foreign oilseed crop that will likely outweigh a modest increase in foreign demand, downward pressure will be placed on U.S. and world oilseed prices. U.S. soybean prices are projected to range between $5.50 to $7.00 per bushel. Soybean meal prices are projected at between $190 to $225 per short ton, and soybean oil prices between 22.0 and 26.0 cents per pound.

Rod Paschal, Oilseeds Chairperson
Phone: (202) 720-0881 E-mail: paschal@fas.usda.gov

EUROPEAN UNION GRAIN PRODUCTION

Total grain production (excluding rice) in the European Union (EU) for 1997/98 is projected at 199.8 million tons, down 1 percent from last year's record crop of 202.7 million. Overall, grain yields are forecast lower for 1997/98 with an average yield of 5.34 tons per hectare compared with last year's record yield of 5.56. The 1997/98 harvested area is forecast at 37.4 million hectares, up 3 percent from last season. Though production is estimated lower for 1997/98, it would still represent the EU's second-largest crop.

EU grain yields for 1997/98 are forecast lower due to a number of factors. Weather to date has not been as favorable as last year, especially in Spain, Portugal, and Italy. Furthermore, the overall quality of land returning to production as a result of the reduction in set-aside will be a factor lowering average yields. In addition, a slight increase in area planted to lower-yielding spring varieties in some EU areas is expected because of weather-related delays in planting last fall. Planting delays because of excessive rainfall were reported in eastern Germany, Italy, and Spain.

Though EU grains yields are projected lower in 1997/98, the yield trend is upward. The tendency of producers in the EU to move towards higher-yielding feed-wheat varieties is continuing. This is encouraged by the ability of flour manufacturers to use wheat gluten to achieve needed protein levels in their flour. However, growers of malting-quality barley are being paid substantial premiums for their crops.

Spain experienced a serious drought from January to April 1997, and prospective grain production is down 4.7 million tons from last year's unusually large level, to 15.5 million. Portugal suffered from the same drought and is expected see a drop in production of 6 percent, to 1.3 million tons. Dry conditions in southern France and southern Italy during the same time period are expected to reduce durum wheat yields. Dryness across the bread-wheat growing areas of the United Kingdom and France was not severe and rains beginning the week of April 27 have improved conditions. Weather across Germany has been mostly favorable, and yield is projected to be similar to last year and allowing production to increase as harvested-area increases. However, the EU's final crop size can vary substantially because of weather factor over the next few months.

The mandatory set-aside rate for the EU 1997/98 grain crop has been reduced to 5 percent from 10 percent in 1996/97. Nevertheless, harvested-area is expected to increase only 3 percent. Much of the remaining land will be put into voluntary set-aside rather than into production because of attractive compensation levels.

Paul Provance, Regional Analyst
Phone: (202) 720-0882 E-mail:
provance@fas.usda.gov

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