National drought announcement, record temps expected to continue
China’s Central Meteorological Observatory expects the current heatwave to continue until August 25th. Since July 21, the center has issued 30 consecutive high-temperature warnings and 8 consecutive red warnings, the highest level.
The center also issued a national yellow drought warning, the third highest level, and its first national drought warning of the year.
Jiangsu province warned that road surface temperatures had reached 68C (154F) which could damage roads.
Hubei said some areas would reach as high as 44C (111F) on Friday.
Henan issued an official drought warning. The province noted that August rainfall was 80% lower than average. Combined with extremely high temperatures, this has “a great impact on agricultural production” according to the announcement.
Henan has 705k hectares affected by drought, with 140k hectares reaching the level of moderate drought, and 22k hectares classified as severe drought.
Corn futures further weakens amid poor demand, oil softens
Corn futures on Dalian Commodity Exchange (DCE) remained in a bearish trend on Friday with the curve closing marginally lower. The main contract dropped 0.59% on the day to 2,686/ton ($398/ton).
Futures largely followed cash prices to the downside due to weak demand for the grain as well as an increasing domestic corn supply amid the ongoing harvest season.
Oilseed futures complex were mixed with meal futures strengthened about 1% on the day while oil futures dipped less than a percent, continuing the current downward trend.
Meanwhile, egg and hog futures were mostly in a bullish tone with the contract gaining about 1% day on day.