October 27, 2003

 

 

China Winter Wheat Planting Acreage To Increase In 2004/05

 

China's winter wheat planting acreage in the June 2004-May 2005 marketing year is expected to be higher compared with acreage in the current season, a senior government official in China said over the weekend.

 

The official China Central Television quoted the secretary of China's Ministry of Agriculture, Du Qinglin, as saying sowing of winter wheat in the three major producing provinces of Henan, Hebei and Shandong has reached, on average, about 70% of the intended level.

 

Winter wheat is planted during September and October, and harvested in May and June.

 

Du's remarks contradict earlier talk in the market that planting acreage this winter may not be as much as last winter, as wetter and colder weather in Henan and Shandong delayed the start of planting by as much as two weeks.

 

Winter wheat planting has been of particular concern as market participants debate whether China's traditional wheat surplus will turn to a shortage by 2004.

 

In the last four seasons, China's wheat crop has steadily fallen, with farmers planting more oilseeds and other cash crops which gave them better returns than grains.

 

But this year, wheat planting in some major producing regions reversed the declining trend after the government vowed to increase support to wheat farmers through higher procurement prices.

 

In Hebei, northern China, planting of winter wheat is already completed, while in Shandong, it reached 70% and in Henan, central China, planting has reached 50%, Du said.

 

Total acreage of winter wheat in Henan, Hebei and Shandong is estimated to be 10 million hectares, about half of the total acreage in all of China, Du said. He didn't provide comparative figures for the previous winter crop area.

 

Chinese wheat prices have been firmer in recent weeks, partly because of weather-related sowing delays.

 

China's wheat production in the 2003-04 marketing year is estimated at 86 million metric tons, down 4.6% from production in the previous year, according to data from a government-backed grain think tank in China.

 

 

Source: MOA