A cold front has caused temperatures to plunge across northern China, sparking concern about damage to fruit and vegetable crops and driving investors to bet on production losses. Apple futures on the Zhengzhou Commodity Exchange have surged about 8% in slightly under two weeks as many regions experienced an abrupt shift from warm to cold weather. Some northern areas even experienced heavy snowfall.
As China is one of the top fruit and vegetable producers, it delivers roughly a third of the world’s supply. The agriculture ministry has warned that the sharp drop in temperatures can cause harm to apple trees in the main producing regions of Shaanxi, Shanxi and Xinjiang. Yields of pears, peach, citrus and grapes may be adversely affected as well.
The cold front is expected to continue, with widespread rain and snow forecast in northern and central regions. While cold fronts are not unusual in April, the current one appears to be lasting longer with heavier rainfall than usual.
Source: bnnbloomberg.ca