China Daily reports that drought threatens more than 11.3 million hectare crops in North China.

(emphasis mine) [my comment]

Severe drought hits China's grain zones
(Xinhua)
Updated: 2009-08-17 21:41

BEIJING: A severe drought has affected 170 million mu (11.33 million hectares) of crops in China, the State Flood Control and Drought Relief Headquarters said on Monday.

The hard-hit areas are China's main grain production bases and the drought might threaten autumn harvest as it is a crucial season for crop growth, said Zhang Xu, an official with the headquarters.

Among the total affected crops, 62.99 million mu [4.2 million hectares] suffered serious drought and 16.08 million mu [1.07 million hectares] dried up, according to the headquarters.

About 3.9 million people had difficulties getting sufficient water, as well as about 4.37 million livestock.

Local governments have been fighting drought to ensure water supply for residents and for crops growth.

About 6.82 million people had participated in drought-fighting as of August 10 in worst-hit areas of the Inner Mongolia Autonomous Region, Xinjiang Uygur Autonomous Region and Jilin, Shanxi and Liaoning provinces.

About 340,000 automobiles had been put into use to transport water as of August 10, according to the headquarters.

Western Liaoning Province received light rain Sunday night, the first for almost two months, and local meteorological department made artificial rain following the light rain to relieve drought.

Drought quickly expanded through northern and northeastern China since late July, as a result of insufficient rainfall and continued high temperatures.

China View reports about emergency water supplies relieve north China drought.

Emergency water supplies relieve north China drought
www.chinaview.cn 2009-08-16 21:06:40

BEIJING, Aug. 16 (Xinhua) --Authorities are taking emergency measures to ensure that 1.5 million people affected by drought in north and northeast China are receiving drinking water.

They are among 3.9 million people in Inner Mongolia Autonomous Region, Shanxi, Liaoning and Jilin provinces who are having difficulty getting drinking water supplies, said a statement on the website of the Office of State Flood Control and Drought Relief on Sunday.

Authorities are also irrigating 47 million mu (3.13 million hectares) of crops, said the statement.

Altogether 168 million mu (11.2 million hectares) of crops were affected.

The drought has spread through north and northeast China since late July as a result of insufficient rainfall and continued high temperatures.

Once again, Nogger points out more USDA insanity.

Monday, 17 August 2009
Grain Market Snippets - I Wish The USDA Was My Girlfriend

…
The voices circulating inside my head are also telling me that it's strange that China, who you will recall were suffering from the worst drought in more than fifty years back in February, should eventually pull off a larger wheat crop than last year. Back then Dow Jones published a news report that said Chinese wheat production would be down 10% this year "in a best case scenario" going on to say that irrigation can only help 60-70% of the crop. Now, miraculously, production this season will come in 2 MMT higher than last year at 114.5 MMT, say the gullible USDA, [Does the USDA have ANY credibility left at this point?] who appear to have swallowed it hook line & sinker. I wish the USDA was my girlfriend. The Chinese telling porkies, whoever would have dreamt up such an absurd suggestion.

My reaction: Drought threatens more than 11.3 million hectare crops in north china.

1) A severe drought has affected 170 million mu (11.33 million hectares) of crops in China

2) The drought has quickly spread through north and northeast China since late July as a result of insufficient rainfall and continued high temperatures.

3) The hard-hit areas are China's main grain production bases, and the drought might threaten autumn harvest as it is a crucial season for crop growth

4) Among the total affected crops, 62.99 million mu (4.2 million hectares) suffered serious drought and 16.08 million mu (1.07 million hectares) dried up

5) Authorities are taking emergency measures to ensure that 1.5 million people affected by drought in north and northeast China are receiving drinking water.

6) They are among 3.9 million people in Inner Mongolia Autonomous Region, Shanxi, Liaoning and Jilin provinces who are having difficulty getting drinking water supplies

7) About 6.82 million people had participated in drought-fighting as of August 10.

8) About 340,000 automobiles had been put into use to transport water as of August 10.

USDA folly

1) Despite the worst drought in more than fifty years, China claims it will pull off a larger wheat crop than last year.

2) The USDA agrees and predicts that China’s wheat production this season will miraculously come in 2 MMT higher than last year at 114.5 MMT,

3) The USDA is a joke.


Conclusion: Since I first reported that *****Northern China hit by worst drought in 50 years***** back on February 2^nd, nothing has changed. China is still downplaying the drought’s effects, and Chinese food inflation is guaranteed to stay elevated as the drought impacts grain availability. Once the scale of 2009’s global food shortage becomes apparent, Chinese authorities will be under enormous pressure to drop the dollar peg.