China’s food security concerns grow as harsh weather impacts wheat crops

China’s economy is working to recover from the effects of a real estate crisis and is now faced with the challenge of weather-related issues impacting key crops, particularly wheat. The country, which is the largest producer of wheat globally, has seen a significant decline in production due to poor weather conditions during the growing season. As a result, the Chinese government is taking steps to ensure food security and self-sufficiency in major agricultural commodities.

The Teucrium Wheat Fund (WEAT) is expected to benefit from bullish traders who anticipate a rise in wheat prices as supply continues to be affected by weather conditions. China’s reported crop quality issues may lead to increased demand for imported milling grade supplies, with potential purchases estimated at 12 million tonnes.

Investors and traders seeking exposure to key agricultural commodities can consider the Teucrium Agricultural Fund (TAGS), a fund of funds combining exposure to Teucrium ETFs focused on corn, wheat, soybeans, and sugar. TAGS offers a diversified and cost-effective approach to accessing these commodities, with a low expense ratio of 0.13%.

As China faces challenges in its economic growth, ensuring food security becomes a top priority for the government. By implementing policies to address weather-related crop issues and promoting self-sufficiency in agricultural commodities, China aims to secure its food supply and stabilize its economy.

Tags: wheat, crop, crisis, food security, agricultural commodities, demand, weather conditions, self-sufficiency, China, real estate, prices, crops, Production