Thursday, June 1, 2023

Wheat: Flooding In China Means Dancing In Chicago

 First up, a quick hit from AgWeb's ProFarmer, May 31:

China Trying to Salvage Damaged Wheat

 China’s ag ministry urged local authorities to speed up harvesting and drying of damaged grain, after heavy rain flooded fields of ripe wheat in Henan, the country’s largest growing region. Authorities should send emergency teams to drain water from fields, speed up access by harvesters and mobilize drying machinery to save as much of the crop as possible, the ministry said. It also urged buyers to purchase sprouted wheat that can still be used for feed or industrial purposes, while making sure it does not go to food.

And from Reuters, June 1:

'Granary of China' braces for more wheat-damaging rain

China's largest wheat-growing province of Henan is expected to be hit by more rain in the coming days, state forecasters said on Thursday, complicating efforts to harvest grain already damaged by wetter than normal weather in late May.

Known as the "granary of China", the south of Henan had been struck by higher-than-normal rainfall in the last week of May days ahead of the harvest of wheat planted last winter. The rains have caused some grain to sprout or be hit by blight.

China's winter wheat accounts for the majority of the country's annual wheat output....


Way over there on the right side of the chart you have the most active July futures up 20'2 (+3.41%) at 614'. Unfortunately for farmers and other longs this comes off of a two year low before things reversed yesterday morning.

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