China’s Heavy Rains Seen Slowing Corn Growth, Delaying Harvest
(Bloomberg) -- Torrential rains that triggered floods in parts of China in June are seen continuing in July, slowing growth of the corn crop and delaying the harvest. Still, damage to early-season rice and cotton is probably minor.
Most of the northeast and north is likely to receive excessive rain in July, said the National Climate Center. Average rainfall in the country last month was the ninth highest since 1961. The worst flooding came in 1998, when thousands of people were killed as river banks burst, flooding villages and farmland.
“What's worrying the market is that the domestic corn harvest could be delayed as there's not enough sun for crops to grow,” said Meng Jinhui, a senior analyst with Shengda Futures. A delayed harvest could support domestic prices during September and October as new crop supplies may not reach the market on time, said Meng.
China's corn prices have been hovering near the highest in five years as demand surpasses output, and the second-largest consumer could be set to exceed its World Trade Organization low-tariff import quota for the first time.
Yangtze Warning
Flooding in some provinces in the south likely caused only limited damage to rice because temperatures were high, unlike last year when below-normal temperatures hurt crops during flowering, said Ma Wenfeng, an analyst with Beijing Orient Agribusiness Consultant Co. Logistical disruptions because of the bad weather have pushed up prices of vegetables and pork, said Ma.
Floods in the south and southwest have also raised concerns that they may spread African swine fever and cause more outbreaks at small farms, said Ma.
China also issued a flood warning on the Yangtze River, the country's longest, after water flow from upstream rivers to the Three Gorges Dam hit 53,000 cubic meters per second on Thursday, according to the Ministry of Water Resources. The Yellow River, the second-longest, is also preparing for the flood season, which started on Wednesday.
The ministry said Tuesday that frequent floods are expected in rivers and lakes in July and August due to heavy rainfall, and urged high vigilance.
Floods in June triggered by torrential rains in 25 provinces led to economic losses totaling 36 billion yuan ($5.1 billion), affecting 16 million people with 106 dead or missing, according to state television.
©2020 Bloomberg L.P.
With assistance from Bloomberg
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
