April 30, 2004

China Winter Wheat Yields Set To Surpass 2004 Levels

The winter wheat planting situation in China's major wheat producing areas has improved over last year, according to a report issued by China's Ministry of Agriculture on its Web site.
 
Nationwide, proportions of the good and excellent grade winter wheat sprouts are estimated at 80% of total planted seedlings, up 7.3% from a year ago.
 
In major wheat producing areas such as Shandong, Hebei and Henan, planting progress is deemed better than last year.
 
"Winter wheat yields are expected to increase (from last year), if we have normal weather and adequate pest control and irrigation," said the report.
 
In late March, most parts of China experienced weather conditions of low precipitation and higher-than-normal temperatures. In most of northern China, heat and sunshine were plentiful, and the good soil moisture have together formed a beneficial condition for winter wheat crops to emerge and joint.
 
But in parts of central China, a dryness seen in the last 10 days of March, worsened by strong winds, has quickly depleted top soil moisture. The sub-soil moisture is preserved well, and local farmers have since replenished enough moisture, the report said.
 
The government report also called on farmers to increase efforts in irrigation and pest control to ensure a smooth increase in output.
 
China harvested 86 million tons of wheat in 2003-04, and is forecast to harvest 83 million tons in 2004-05. The country is the world's largest wheat consumer, with annual consumption of more than 100 million tons.
 
China's winter wheat acreage, which accounts for 90% of total annual production, is pegged at 19.5 million hectares, down about 5% from last season, and production is forecast at only 78.11 million tons for winter wheat, down 4% from last season, traders said, citing a forecast issued earlier this month by a government think tank.
 
For the remaining two months of the 2003-04 crop year, a supply shortage will persist, but the government intends to use wheat reserves to bridge the gap, the report said.
 
"Reserves will continue to dwindle, but supply and demand of the whole 2003-04 crop year is expected to be balanced," said the report.