Drought In Northern China Hits Soybean Crop

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.

2 Comments

Filed under Economy, Markets

2 responses to “Drought In Northern China Hits Soybean Crop

  1. johnsmith9876

    This is all Americans’ fault. The Americans uses soya oil as fuel and used up all they beans, and that caused soya bean prices to go up, depriving Chinese with the normal supply of soya beans. That’s why Chinese farmers have to grow soya beans. If the US stop using soya oild for fuel, no matter how small amount that is, will reduce the soya bean price and allowing Chinese farmers to rest their land, or grow something else that does not require water.

  2. CB

    I’m not sure I follow your logic, but China has long been an importer of soybeans, primarily from the U.S. but increasingly from Brazil and Argentina. It imported a record 13.9 million tons in the first four months of this year. It is drought in the two South American countries that has contributed to pushing up world prices rather than a lack of U.S. exports. It is also worth noting that soybeans are one area of Chinese agriculture with an open market. Two thirds of the 100 large soy processing companies in China have substantial foreign ownership. The four agrimultinationals, ADM, Bungay, Cargill and Louis Dreyfus, are all there. -CB

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