Dry rivers, scorching heat and power rationing in parts of China are disrupting plant operations and threatening crop yields.

Analysts fear the scenario will harm production of crops such as rice and corn for the fall harvest in the central regions of the country and along the Yangtze River basin.

The river is at its lowest level since records began, according to data published on Monday, 15, by China's Ministry of Water Resources.

Drought in China

Parts of China are suffering their worst heat wave in six decades, with temperatures of up to 43C and the lowest volume of rain since 1961, a 40% drop from last year. The heat is expected to continue for the next two weeks.

The corn crop is among the crops most threatened by being at a stage where extreme heat or water conditions can hurt yields, said Sitonia Consulting co-founder Darin Friedrichs, a Shanghai-based agricultural research firm.

The effect of drought along with the heat wave could lead Beijing to import more corn from Brazil or the U.S., Friedrichs added.

The U.S. is the largest corn seller for China, which already faces export cuts from Ukraine, another major supplier.

For the year ending September 2023, China is expected to produce 271 million tons of corn and import 18 million tons, most of which are used as animal feed, while industrial applications are expected to use 81 million tons, according to u.S. Department of Agriculture (USDA) forecasts.

Sichuan Meifeng Chemical Industry said in a document that a suspension of production caused by energy rationing would reduce urea manufacturing by about 15,000 tons and the production of compound fertilizers by about 6,000 tons, but would not have a significant impact on the company's operational performance.

According to sichuan producer Lutianhua fertilizer production can also be achieved. According to the company, Sichuan's energy reduction can reduce its urea production by about 35,000 tons and its methanol production by about 10,000 tons, hurting profits.

Source: Canal Rural