More drought problems for China’s farmers: this time it is soybean growers in Inner Mongolia and Heilongjiang that are affected. The region, China’s main soybean growing area, is experiencing its lowest rainfall in more than half a century.
The forecast for June promises no relief. More than half Heilongjiang’s crop area–6.2 million hectares–has been hit by the drought. Earlier this year wheat farmers were affected when the North China Plain was parched by drought.
China is the world’s biggest consumer of soybeans, and is importing to cover the gap between consumption and production. Along with drought in Brazil and Argentina, the two countries that rank two and three after the U.S. in the world soybean production table, this has helped push soybean futures to nine months highs.