Decrease in Chinese Wheat Production

Official data released today, Saturday, indicates that "summer wheat production in China has decreased by 0.9 percent this year, marking the first drop in seven years due to heavy rainfall in major agricultural areas prior to the harvest season." The National Bureau of Statistics revealed that "production in the world's largest grain-producing country fell to 134.53 million tons. However, this year still witnesses an abundance of crops." Furthermore, it was noted that "the area planted with wheat increased by 0.4 percent but the yield declined by 1.3 percent." The global wheat market is closely monitoring dry weather conditions in Canada and the United States, both of which are major exporting countries, as well as the grain export agreement through the Black Sea between Russia and Ukraine, which expires on Monday. The decrease in wheat production in China is largely attributed to weeks of heavy rainfall that damaged wheat crops in Henan province, the country's largest grain-producing region, and surrounding areas just before the harvest.