BEIJING: Floods have damaged corn and rice crops in China’s key northern grain-producing belt, traders and analysts said, with more rain in the forecast as another typhoon approaches, threatening to add to global food inflation pressures.
The hit to China’s cereal crops – the full extent of which is not yet clear – comes as consumers worldwide face tightening food supplies amid India’s ban on rice exports last month and disruptions in Black Sea grain shipments caused by the war in Ukraine.
“The flooded area in the north will see some yield losses,” said a Singapore-based trader at a Chinese grain-trading company. “We will have a clear picture on the extent of damage after flood waters recede.”
Northern China, still grappling with swollen rivers and floodwaters caused by Typhoon Doksuri two weeks ago, could see further crop damage with Typhoon Khanun.
On Thursday, China’s northern Hebei province upgraded its emergency response to the highest level after last week’s record flooding in preparation for potentially damaging downpours from the new storm.
Initial estimates show that 4 million to 5 million metric tons of corn, or about 2 per cent of the country’s output, has been affected by the floods, two trade sources said.
“We can’t confirm how much of that will be totally lost or damaged,” a second trader in Singapore said.
Corn prices on the Dalian Commodities Exchange fell 1.4 per cent to 2,759 yuan (US$381.34) per ton.
Source: CNA
