June 9, 2011

 

China eyes bumper winter wheat harvest
 

 

Drought-hit China completed nearly 40% of its winter wheat harvest with major wheat-producing provinces Anhui and Henan leading the way.

 

Anhui and Henan have harvested 35.19 million mu and 41.55 million mu as of Monday (Jun 6), accounting for more than 80% and 50% of their total growing areas respectively, according to the agriculture ministry.

 

Earlier this year the FAO warned that China may suffer wheat losses due to drought and the reduction will then affect global wheat output. After the forecast was announced, the price of wheat rose steeply from already high levels. In just half a year wheat prices saw a dramatic 50% hike. Experts also say expectations for China's wheat harvest will also impact the global economy.

 

Grains are one of the basic products closely linked with the price of other commodities. The bumper harvest of Chinese wheat will go some way to stabilise global commodity prices and ease inflationary pressure.

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