The area of ​​crops affected by drought in the country totaled 112 million mu, and the state's total defense started the emergency response to drought level III.
In winter wheat area, a large range of precipitation to alleviate drought, experts said that this year's grain price is moderately controllable Xinhua News Agency, the national crop drought area of ​​112 million mu, the national defense started a level III emergency response to drought. The food market in China under the threat of drought is at the forefront of the storm. The State Council executive meeting held on the 9th passed 10 measures to support grain production. On the 10th, the State Council held a nationwide conference on food production and teleconference in Beijing. Wen Jiabao emphasized that stable development of grain and agricultural production is to manage inflation expectations and stabilize consumer prices. The basis of the overall level is also the basis for realizing stable and rapid economic development and social harmony and stability.
How does the current drought affect the food market? What kind of effect will the "National Ten Articles" produce? Where do food prices go after the market?
Summer grain accounts for nearly a quarter of annual production
Due to the steady increase in grain prices, the current farmers' enthusiasm for growing grain is high, but due to the weak anti-disaster facilities, the farmers' enthusiasm for disaster prevention is low.
"Food production is important every year. This year's summer grain production is particularly important." Han Changfu, Minister of Agriculture, said that summer grain production accounts for nearly a quarter of grain output and summer oil production exceeds annual oil production by 2/5. The summer harvest was full and active throughout the year.
At present, China's summer grain production areas have experienced severe drought. The main drought-prone areas of winter wheat in eight provinces, such as Shandong, Henan and Hebei, have serious drought conditions. According to data from the Ministry of Agriculture, as of February 9, the area affected by drought in winter wheat in 8 provinces accounted for 42.4% of the sown area.
From the 9th to the 10th, the northern region had the largest snowfall this year. In response to the current favourable precipitation conditions, the meteorological department has organized cross-regional joint artificial rainfall (snow) operations in Beijing, Tianjin, Hebei, Shanxi, Shandong, Henan, and Anhui, and the operation affected areas have generally reduced rain and snow. The Air Force’s domestic transport aircraft took off from Jinan Yaoqiang Airport on the 9th, successfully carrying out artificial rainfall enhancement operations over the heavily-drenched Luyu Suyu. According to news from the National Flood Control and Drought Relief Headquarters, the large-scale precipitation has effectively curbed the momentum of rapid development of drought conditions in the winter wheat region, and the drought conditions in some areas have eased. However, Ke Zongjian, an expert from the National Climate Center, predicts that the climate of these winter wheat producing regions is still characterized by low precipitation, and drought and grain promotion cannot be taken lightly.
Li Guoxiang, a researcher at the Chinese Academy of Social Sciences, said that due to the steady increase in grain prices, the farmers’ enthusiasm for growing grain is high. However, due to the weak anti-disaster facilities, farmers’ enthusiasm for disaster prevention is low. This country's new subsidy for drought-resistance and watering and weak seedlings for returning green joints will help improve the enthusiasm of local and peasants in fighting disasters.
Experts generally believe that, “In contrast to past disaster relief, this is a pre-disaster grant and it is truly a rainy day.â€
Chinese and foreign grain markets are separated by "firewalls"
As China attaches great importance to food security, it is far higher than the world's average food stocks and consumption ratio and 95% self-sufficiency rate, which will ensure China's own food supply.
As the world's largest wheat producer, the drought in northern China has attracted domestic and international market attention. Before and after the Spring Festival, the prices of agricultural products in the international futures markets rose sharply. On February 9, the strong wheat in the domestic futures market had exceeded 3,000 yuan/ton. The relevant international organization issued an early warning that the drought in China may have an impact on the world grain market.
However, Li Guoxiang and other experts believe that China and the world's grain markets have always been separated by "firewalls" and they have a slight influence on each other, but there is no decisive relationship. In 2010, international wheat prices rose by nearly 45% due to disasters in Russia and other places, but the domestic price of wheat only rose by 5.1%.
Authoritative sources said that due to China’s high priority on food security, it is far higher than the world average level of food inventories and 95% self-sufficiency, which will ensure China’s own food supply. China's grain production has achieved "seven consecutive increases" for the first time. This is an important weight for the government to regulate and control the market.
Han Changfu, Minister of Agriculture, stated that there are still some positive factors in achieving the summer harvest in China this year. If the policy signal is strong, it will help reduce disaster losses; the sown area will increase slightly, and there will be a certain amount of water for spring irrigation. "The current fertility process of winter wheat is only half of the time, and there is more room for maneuvering in the middle and later stages. It is hopeful to seize the summer harvest."
"Since domestic and foreign food prices are at historically high levels, coupled with the appearance of a large number of grain inventories and anti-disaster effects, China's grain prices are expected to show a 'moderate and controllable' wave this year," said Li Guoxiang.
However, relevant experts cautioned that investors should be wary of investing in drought-prone food prices. Cheng Guoqiang, a researcher at the Development Research Center of the State Council, said that due to the current excess liquidity in the market, it is necessary to strengthen supervision to prevent the speculators from picking up drought-related topics and to stir up speculation in the futures market to drive the spot market to increase, thereby amplifying the expected reduction in disaster output and aggravating food price fluctuations.
In winter wheat area, a large range of precipitation to alleviate drought, experts said that this year's grain price is moderately controllable Xinhua News Agency, the national crop drought area of ​​112 million mu, the national defense started a level III emergency response to drought. The food market in China under the threat of drought is at the forefront of the storm. The State Council executive meeting held on the 9th passed 10 measures to support grain production. On the 10th, the State Council held a nationwide conference on food production and teleconference in Beijing. Wen Jiabao emphasized that stable development of grain and agricultural production is to manage inflation expectations and stabilize consumer prices. The basis of the overall level is also the basis for realizing stable and rapid economic development and social harmony and stability.
How does the current drought affect the food market? What kind of effect will the "National Ten Articles" produce? Where do food prices go after the market?
Summer grain accounts for nearly a quarter of annual production
Due to the steady increase in grain prices, the current farmers' enthusiasm for growing grain is high, but due to the weak anti-disaster facilities, the farmers' enthusiasm for disaster prevention is low.
"Food production is important every year. This year's summer grain production is particularly important." Han Changfu, Minister of Agriculture, said that summer grain production accounts for nearly a quarter of grain output and summer oil production exceeds annual oil production by 2/5. The summer harvest was full and active throughout the year.
At present, China's summer grain production areas have experienced severe drought. The main drought-prone areas of winter wheat in eight provinces, such as Shandong, Henan and Hebei, have serious drought conditions. According to data from the Ministry of Agriculture, as of February 9, the area affected by drought in winter wheat in 8 provinces accounted for 42.4% of the sown area.
From the 9th to the 10th, the northern region had the largest snowfall this year. In response to the current favourable precipitation conditions, the meteorological department has organized cross-regional joint artificial rainfall (snow) operations in Beijing, Tianjin, Hebei, Shanxi, Shandong, Henan, and Anhui, and the operation affected areas have generally reduced rain and snow. The Air Force’s domestic transport aircraft took off from Jinan Yaoqiang Airport on the 9th, successfully carrying out artificial rainfall enhancement operations over the heavily-drenched Luyu Suyu. According to news from the National Flood Control and Drought Relief Headquarters, the large-scale precipitation has effectively curbed the momentum of rapid development of drought conditions in the winter wheat region, and the drought conditions in some areas have eased. However, Ke Zongjian, an expert from the National Climate Center, predicts that the climate of these winter wheat producing regions is still characterized by low precipitation, and drought and grain promotion cannot be taken lightly.
Li Guoxiang, a researcher at the Chinese Academy of Social Sciences, said that due to the steady increase in grain prices, the farmers’ enthusiasm for growing grain is high. However, due to the weak anti-disaster facilities, farmers’ enthusiasm for disaster prevention is low. This country's new subsidy for drought-resistance and watering and weak seedlings for returning green joints will help improve the enthusiasm of local and peasants in fighting disasters.
Experts generally believe that, “In contrast to past disaster relief, this is a pre-disaster grant and it is truly a rainy day.â€
Chinese and foreign grain markets are separated by "firewalls"
As China attaches great importance to food security, it is far higher than the world's average food stocks and consumption ratio and 95% self-sufficiency rate, which will ensure China's own food supply.
As the world's largest wheat producer, the drought in northern China has attracted domestic and international market attention. Before and after the Spring Festival, the prices of agricultural products in the international futures markets rose sharply. On February 9, the strong wheat in the domestic futures market had exceeded 3,000 yuan/ton. The relevant international organization issued an early warning that the drought in China may have an impact on the world grain market.
However, Li Guoxiang and other experts believe that China and the world's grain markets have always been separated by "firewalls" and they have a slight influence on each other, but there is no decisive relationship. In 2010, international wheat prices rose by nearly 45% due to disasters in Russia and other places, but the domestic price of wheat only rose by 5.1%.
Authoritative sources said that due to China’s high priority on food security, it is far higher than the world average level of food inventories and 95% self-sufficiency, which will ensure China’s own food supply. China's grain production has achieved "seven consecutive increases" for the first time. This is an important weight for the government to regulate and control the market.
Han Changfu, Minister of Agriculture, stated that there are still some positive factors in achieving the summer harvest in China this year. If the policy signal is strong, it will help reduce disaster losses; the sown area will increase slightly, and there will be a certain amount of water for spring irrigation. "The current fertility process of winter wheat is only half of the time, and there is more room for maneuvering in the middle and later stages. It is hopeful to seize the summer harvest."
"Since domestic and foreign food prices are at historically high levels, coupled with the appearance of a large number of grain inventories and anti-disaster effects, China's grain prices are expected to show a 'moderate and controllable' wave this year," said Li Guoxiang.
However, relevant experts cautioned that investors should be wary of investing in drought-prone food prices. Cheng Guoqiang, a researcher at the Development Research Center of the State Council, said that due to the current excess liquidity in the market, it is necessary to strengthen supervision to prevent the speculators from picking up drought-related topics and to stir up speculation in the futures market to drive the spot market to increase, thereby amplifying the expected reduction in disaster output and aggravating food price fluctuations.
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