The EU's crop-monitoring service reported on Monday that cereal fields are in general good condition in Europe after a mild, dry spell helped them recover from an autumn soggy. However, grain belts near the Black Sea lack hardiness for the winter.

MARS' December update echoes comments made in the November report that dry weather in Western Europe allowed farmers to finish sowing despite delays.

MARS reported that mild cold snaps in central and northern Europe had no adverse impact, and that soil water reserves were well above critical levels.

However, there were higher risks in an area of the Black Sea Rim that included parts of Romania, Bulgaria, and Ukraine, as well areas of Russia. MARS reported that "sowing and the initial development of winter grain were severely hampered by very dry topsoils. This resulted in crops which are currently underdeveloped, and in poor condition."

Reports of poor crop conditions in Russia - the world's largest wheat exporter - have caused traders to be uncertain about the country's supplies, as the government tries to limit exports.

MARS reported that crops in other parts of Europe are also not as resilient for the winter. This is especially true in Poland and Baltic States. However, forecasts show no extreme cold temperatures in the near future, while long-range projections suggest warmer temperatures than normal in Europe overall this winter.

Lack of soil moisture remains a problem in Sicily, which is an important area for the cultivation of durum wheat, despite recent rains that have allowed sowing.

MARS stated that rain was urgently needed in the Maghreb region to aid in sowing. This is especially true in Morocco and Western Algeria.

(source: Reuters)