April 15, 2008

China's wheat harvest seen higher amidst drought

China forecasts ample winter wheat harvest in 2008 as higher yields and increased acreage offset the impact of severe drought.

Winter wheat output is expected to grow by 1.3 percent this year to 102.6 million tonnes, lifting China's total wheat output to 107.6 million tonnes, up 2.5 percent from 2007, the China National Grain and Oil Information Centre (CNGOIC) said.

Meanwhile, high profits on soy have decreased Chinese farmers' interest in planting corn, agricultural officials said Monday.

CNGOIC lowered its estimate for soy output in 2007 to 13.5 million tonnes, down 500,000 tonnes from earlier estimates.

Drought in the northeastern province of Heilongjiang had hurt output, it said, supporting prices and encouraging farmers to plant more for 2008.

As of March 26, drought conditions had affected 19.4 million hectares of arable land, mainly in northern China, including 3.3 million hectares of cropland, according to the state media.