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Many places encounter severe drought, grain enterprises or benefit from agricultural product price increases

Published: 2024-12-22 Author: mysheen

Last Updated: 2024/12/22, It was learned from the conference held recently by the National Defense Department that since summer, precipitation in northwest China, North China, Huanghuai River, upper and middle reaches of the Yangtze River and southwest parts has been less, and severe drought has occurred in some provinces and regions. Specifically speaking, on July 28, Henan and Shaanxi provinces have both started anti-terrorism.

It was learned from the conference held by the State General Administration of Prevention a few days ago that since the beginning of summer, there has been less precipitation in Northwest China, North China, Huang-Huai, the upper and middle reaches of the Yangtze River and parts of southwest China, and serious drought has occurred in some provinces and regions.

Specifically, on July 28, Henan and Shaanxi provinces both launched a third-level emergency response to drought, among which Henan suffered the worst drought in 63 years. In addition, there has also been a severe drought in Huaibei, Anhui Province, where more than 300000 people have been put into fighting the drought.

The latest news released by the Ministry of Agriculture shows that the current corn is about to enter a critical period of male silking, and the sustainable drought will adversely affect the growth, development and yield formation of autumn grain crops such as corn.

Earlier, the Ministry of Agriculture has issued an article saying that more than moderate El Ni ñ o may occur this year. Henan and Shaanxi have continuously issued emergency responses to drought, which also means that El Nino is more and more likely to occur.

According to international statistics, when El Nino occurs, the output of the world's four major crops, such as corn, spring wheat, winter wheat and rice, will be reduced by about 2%. The Ministry of Agriculture said that El Ni ñ o will not be conducive to the formation of middle and late rice in the south and autumn grain production in the north, and it is an arduous task to resist disasters and win a bumper harvest. Henan Province is known as the "granary of China", and the impact of drought and El Ni ñ o climate may have a significant impact on China's annual grain production.

In the short term, drought warning may lead to stronger prices of agricultural products, while listed grain production companies such as corn, wheat and rice are expected to benefit. Among A-share companies, Dunhuang seed industry, Shennong Dafeng, Wanxiang Denong, Dabei Nong and other related grain enterprises are worthy of attention.

Very cool article!