Wheat-producing regions have been ruled by drought since last Oct. By Feb. 1, wheat acreage suffering from drought totaled 9.113 million ha., of which 2.66 million ha. were suffering from severe drought, accounting for 40.98% and 11.96% of planted wheat acreage respectively.

60% of wheat in Henan and 70% in Anhui are suffering from drought. Dead seedling spots are common in 26,700 ha. in Henan and 60,000 ha. in Anhui. More than 50% of wheat acreage in Shandong, Shanxi, Shaanxi and Gansu are plagued by drought.

According to weather forecast, a mild precipitation may visit northern provinces in early Feb., but is unable to uproot drought.

It is estimated that the drought may affect wheat production by 2 ~ 5% this year. But this is not likely to have a big impact on the nation’s wheat supply, since wheat production increased in the last five years. As the government controls a wheat stock of more than 60 million MT, it has a strong capability to regulate the market. Wheat procurement price is predicted to be slightly higher than the protective price this year, but market price is presumed to be basically stable.

List

News Briefs 1

Wheat Seedlings Plagued by Drought 2

Paddy Procurement Price Raised to Stabilize Production 3

Wheat Consumption for Flour Production 5

Paddy Consumption for Rice Production 6

Corn Consumption Affected by Soft Livestock Consumption 7

Progress of Grain Procurement 7

Weather & Crop Conditions 9

Crop Conditions 10

Weather Forecast (February 6, 2009?February 12, 2009) 10

Price Trends 11