September 14, 2011

Early frost was forecast this week in parts of China's northeast area, the country's largest corn and soy region, stoking concerns over possible damage to corn and soy crops.

China Meteorological Administration predicted that early frost would occur in parts of northwestern Heilongjiang province, the country's largest soy area as well as northeastern parts of Inner Mongolia from Tuesday (Sep 13) to Thursday.

"Early frost comes earlier this year, normally we have early frost late in the month," said one official with a local grain bureau.

He said the damage may be minor as crops are mainly grown in the central and southern parts of the province. But a sharp temperature fall could hurt maturing of the crops.

Earlier, traders expected China, the world's second largest corn consumer, to have a bumper corn harvest this year due to expansion of acreage.

Analysts expect China's corn harvest to increase by 11 million tonnes to 165 million tonnes, much lower than official figures of 182.5 million tonnes by the National Grain and Oils Information Centre (CNGOIC).

CNGOIC also expected soy output to fall by more than 10% from last year.