May 7, 2010

Due to freezing temperatures, which brought heavy snows to many parts of China last month, the country faces its first decline in wheat output in seven years.

"The winter wheat crop in northern China is currently in the stage of regreening and jointing and it is likely that recent cold weather will have negatively impacted crop development," Rabobank said.

This freeze added to the setback caused earlier in the season by drought in southern Chinese provinces of Guizhou, Sichuan and Yunnan, which officials last month said had cut grains production by 1.9 million tonnes.

"Considering these factors, the 2010-11 wheat output in China is expected to decline slightly," a report from the city said.

China's wheat production has not declined since 2003-04, according to USDA data, when it fell to 86.5 million tonnes.

The 114.5 million-tonne crop in 2009-10 made China the world's top wheat producing country by a margin, ahead of India on an estimated 80.7 million tonnes.

The cold weather will have had some effect on corn too. However, production will be supported by a rise in sowings, estimated by a domestic report at 3-4%.

China's corn production, which some analysts believe may have slumped by more than 15% last year, has come under special scrutiny since last month when the country restarted imports.