Chinese Wheat Production Expected to Drop

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China’s wheat production is forecast to fall this year due to bad weather in key growing regions. Drought during the growing period in the Shandong and Hebei provinces and heavy precipitation during harvest in the Henan and Anhui provinces have led to an anticipated 20 percent decrease in China’s wheat production for the 2018/19 crop year. According to the China National Grain and Oils Information Center, wheat output could drop by three million tonnes from last year to 126.7 million tonnes. China is the second largest producer of wheat and also a top consumer, and analysts expect the decreased domestic production to result in more imports.

While the United States (US) is also a top producer of the grain, the ongoing trade disputes between the two countries could turn China away from the US to fill demand. Because of drought in Australia which has damaged wheat production, Europe, Russia, or Canada could step in to fulfill China’s demand if output indeed does decrease to expected levels. With Gro Intelligence, subscribers stay up-to-date on international production and trade data.

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