Dim Sums: Agricultural Markets in China

China is pushing food production into its arid northwestern regions as arable land disappears and water tables are tapped out in eastern and central parts of the country. One new initiative aims to turn China's remote northwestern territory of Xinjiang into a new granary for the rest of China. Last year the State Administration of Grain announced that Xinjiang will take advantage of abundant land, water, and good climate to "excavate" the region's grain production potential to go beyond producing enough grain to meet its own needs to become a national granary that produces and stores a surplus for use of the State. The initiative calls for Xinjiang to maintain a minimum 79 million mu of agricultural land--including 63.2 million mu of "permanent basic farmland", to upgrade irrigation, build "high standard fields," develop grain and oilseed industry clusters, and reduce grain waste. The plan aims for grain storage capacity of 1.5 million metric tons...

Torrential rains drenched wheat just before harvest in China's biggest wheat-growing province, causing sprouting and mold problems. Now officials face challenges of buying up low-grade wheat at a price that keeps farmers happy, keeping moldy wheat out of the flour supply, funding wheat purchases after financial coffers were drained by last year's zero-covid policies, and forestalling fraud as vast price spreads open up between different grades and regions. Sprouted wheat in Henan Province. Henan Province had heavy rainstorms during the last week of May, especially in southern and western parts of the province. These were the heaviest rains at harvest time since 1961 according to financial news outlet Cai Lian She . The excessive moisture caused wheat stalks to keel over, prompted wheat kernels to prematurely send out shoots and wet wheat became susceptible to mold growth. Depending on the degree of damage, the sprouted wheat is downgraded and may only be useable as feed. Wheat ...