Futures Market News
China sees bumper grain crop amid rising prices
Sep 29, 2011 03:23 PM
Chinese grain crops are expected to see record harvests in spite of difficult conditions throughout the growing season.
Xinhua reports that current estimates from the Ministry of Agriculture put the total grain output of the Asian nation at more than 550 million metric tons, a 2.9 percent increase over the previous crop.
"This is a hard-won achievement for our country," Chen Xiaohua, vice minister of agriculture, told the news source.
The increase marks the eighth consecutive year of improving crop yields, a critical goal for a country with more than 1.3 billion people and rising standards of living.
However, rising crop output will not likely lead to lower prices, according to The Boston Globe, with rising demand for grains as both food and feedstock looking to drive prices upward.
Xinhua notes a survey from the National Development and Reform Commission found costs for grain production had gone up at least 10 percent for each major crop.
At 2:13 pm on Thursday, wheat futures gained $13.50 to reach $652.25 per bushel, an increase of 2.11 percent. Rough rice fell 0.61 percent, dropping 10 cents to $16.18 per hundred weight. Corn rose 0.71 percent, improving $4.50 to $635.25 per bushel.
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