China's Corn and Beans Suffering

July 6, 2010 07:51 AM
Through most of this growing season, all three of China’s corn and soybean productionareas (Manchuria, [1]; North China Plain, [2]; and Sichuan Basin or Yangtze River Valley, [3]) have been beset by various adverse weather conditions, reports Planalytics, a company that provides weather information to businesses.
The red and yellow sections in the Vegetation Health Index graphics show that as of July 1, the effects on the production areas are fairly dramatic. Looking at the left panel, 2010, note that nearly all the Northeast [1] has extremely low index values (red shades); the North China Plain [2] has about 40% with extremely low index values; and the Sichuan Basin [3] has mainly moderately low values (deciduous vegetation that is less vulnerable to flooding might be masking the magnitude of the problem for field crops).
This explains why China has been buying U.S. grains…they have a serious problem with their 2010 corn and soybean crops, say Planalytics analysts.


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