A severe lack of rain in the high-producing areas of the world’s top grains consumer is continuing despite snowfall as world prices of wheat remain at their highest values in 24 months, Bloomberg reports.
Damages to Chinese wheat crops are likely to continue because winter wheat is dependent on significant amounts of water while turning green in color and the weather in China is becoming more seasonal, according to statement by a top official with the State Food Control and Drought Relief Headquarters.
"China still faces an arduous task of fighting drought," according to the statement by Chen Lei. "Enhanced efforts of irrigation, recent rain and snowfalls helped prevent the drought spreading in some winter-wheat growing areas."
The nation is set to spend nearly 13 billion yuan (about $2 billion) on efforts to counter damage by the drought and increase the production of grain.
Since February 9, snowfall has impacted several regions and some regions in the south and east will see a snow-rain mix.
Shortly after 7 a.m. on Monday, wheat futures were up 1.28 percent, a 1.15 cent increase to $9.1025 per bushel.
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