August 13, 2007

China's soy output to fall 7.3 percent in 2007

China's soy output is expected at 14.8 million tonnes in 2007, falling 1.17 million tonnes or 7.31 percent compared with last year's output of 15.97 million tonnes, according to China National Grain and Oil Information Centre (CNGOIC).

Although China's soy planting area this year, at 8.8 million hectare, was a drop of 480,000 hectares or 5.17 per cent compared with last year's area of 9.28 million hectares.

Serious droughts in Heilongjiang, China's main soy producing region, makes it even more likely output would drop this year, the centre said. 

Meanwhile, wheat output is expected to rise.

The centre said weather conditions remain normal, China's wheat output will be 107 million tonnes this year, an increase of 2.53 million tonnes over last year.

Corn output is expected to rise even more significantly, growing four percent over last year's output.

China harvested 497.46 million tonnes of grains in 2006, a rise of 2.8 percent from 2005.

Government officials have warned that a smaller autumn grain harvest could fuel China's inflation, which had already risen to a 3-year-high in June.