China may lose up to 5% of its wheat harvest due to drought.

Drought recorded in northern provinces of China

The wheat harvest in China this year may decrease by 5% due to drought in key agricultural areas. It is expected that between 133 and 135 million tons of wheat will be harvested this year, less than last year's 140 million tons.

The drought has the greatest impact on the northern provinces of Henan and Shaanxi, which are the largest wheat producers. Significant rainfall deficits and excessively high temperatures have caused many crops to wither. The weather bureau predicts even higher heat with temperatures up to 38°C in the near future.

High temperatures and prolonged dryness have led to soil hardening and crop wilting.

The Chinese government is taking measures to improve the situation, allocating funds for irrigation systems and mobilizing farmers for joint action. However, this leads to additional costs for farmers who already have low profitability.

Despite the reduced harvest, large reserves of wheat and weak domestic demand will allow avoiding shortages. However, possible changes in import policy due to trade disputes with the USA are anticipated.

Wheat is important for nutrition in China and for animal feed production. Drought may impact the country's economy and the wheat market as a whole.