Indiana Grain Company, LLC

Posted: 07/08/10

By: tomgrisafi

We at Indiana Grain took notice of word across the Bloomberg news wire that Corn crops in China’s Inner Mongolia and Jilin province have been affected by drought.

That information was released by the National Grain & Oil Trade Center on its website.

"Over 70 percent of Inner Mongolia is experiencing drought and authorities there are preparing to seed clouds to induce rainfall," the report noted.

It is not yet clear just how severely the corn crops have been damaged, but the situation certainly suggests even more reason for China to continue shopping for US corn in the weeks and months ahead.

In the US, record heat and drought are raising concerns about many areas where large crops sit. Some farmers have not seen any rain in more than a month and what little they have gotten is not nearly enough.

More so than any other grains, the corn crop seems to be in the biggest trouble.

As of July 6, just for one example, Maryland's Department of Agriculture says two-thirds of the state's crops are in "moderate drought."