China is currently enduring a record-breaking heatwave, with temperatures soaring up to 108°F. This extreme heat is severely affecting key agricultural regions, particularly those responsible for corn and soybean production.
The heatwave and drought are expected to impact 30-40% of China’s corn and soybean growing regions. This reduction in crop yield is likely to drive up the country’s need to import these essential agricultural products.
Given that China is the largest global importer of corn and soybeans, any increase in its import demand will have significant repercussions on global markets.