Bumper winter wheat crop in China

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China has reportedly harvested a record high amount of winter wheat this year. According to the National Bureau of Statistics, China harvested 114.3 million tonnes of winter wheat, which is an increase of 3 percent.

The record crop comes at a time when global grain stocks have been declining. This year’s crop is expected to buoy global wheat supplies.

China’s winter wheat is harvested between May and June and represents more than 95 percent of the country’s total wheat output.

The bump in supply is also expected to offer relief to increasing grain prices around the world, which have been increasing due to crop stresses, particularly drought conditions in multiple countries. This year’s drought conditions are considered some of the worst in 25 years.

U.S. Wheat prices increased to the highest since April 2011 after the U.S. Department of Agriculture reduced its forecast for global production after dry weather curbed crops in Russia this week.

In the 12 months that started June 1, world output will total 665.3 million metric tons, down 1 percent from a June estimate, the USDA said in a report Wednesday. The agency cut its forecast for Russian production by 7.5 percent to 49 million tons and lowered its outlook for exports from the nation by 25 percent.


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