Wheat crop growth in Europe has been helped by rainfall in the last few weeks, with a good harvest just below last year's record expected, observers said on Thursday.

"Recent rain has improved crop condition in many countries and hopes are that with normal weather we will have a large crop although not a record-breaker," one European trader said.

French consultancy Strategie Grains has increased its monthly forecast of this year's EU soft wheat harvest by 1.2 million tonnes to 142.6 million tonnes, 4 percent below the record of 149.3 million tonnes in 2014.

France, the EU's largest wheat producer and exporter, is facing a near-record crop after French farmers planted the largest wheat area in nearly 80 years with concerns over drought damage receding following heavy showers.

"In France, wheat crops are generally in very good shape," said Paul Gaffet of consultancy ODA.

ODA forecasts France's 2015 soft wheat crop at 38.1 million tonnes, up from 37.5 million tonnes forecast in April. France harvested 37.5 million tonnes last year, France's record was 38.2 million tonnes in 1998.

But yellow rust spotted in parts of France, could cause some crop damage.

"There is a bit more disease pressure this year," Gaffet said. "I think it has been well managed by farmers but it tempers the fact that crops are very good shape."

In the second largest producer Germany, the winter wheat crop may fall 3.1 percent on the year to 26.57 million tonnes, German cooperatives said.

Rain has helped too and a large German harvest, though down on last year's bumper crop is expected, the association said.

The third largest producer Britain appears on track for a smaller but possibly higher quality crop than last season.

"Crop conditions so far have been generally good, arguably in some parts better than it was a year ago as we haven't had the wet winter that brought a lot of disease," Home-Grown Cereals Authority analyst Jack Watts said.

"The crop is still full of potential but there is a long way to go," he added.

In fourth largest producer Poland, rain has also helped crop development, said Wojtek Sabaranski of analysts Sparks Polska.

"There is potential for further wheat yield and crop growth," Sabaranski said.

Sparks Polska forecasts average wheat yields of about 4.65 tonnes a hectare, down 11 percent from last year's record, and a crop of about 11.1 million tonnes, down 9 percent from 2014.

Source - http://economictimes.indiatimes.com