China is experiencing a drought of its own… the worst in 30 years. Bad weather all over China could drive wheat prices past the current 11-year high.
“The drought is affecting over 831,400 hectares of farmland,” says Kevin Kerr, who’s keeping an eye on the situation for us, “and leaving over 1 million people thirsty and desperate in northern China. Ironically, China's southern regions have seen 128 people killed and more missing in floods this year… and 1.22 million hectares of crops are suffering because of it.”
Wheat has been the most significant imported grain in China this year. “China is a major importer of grains,” says Kevin. “As drought conditions worsen and demand climbs, imports will likely follow suit.” But from where?
As we’ve been detailing for you in The 5 Min. Forecast, the U.S. grain market, particularly wheat, is having a rough bout with the weather this year, too. Prices are already at decade highs.
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