Floods and heavy rain have killed more than 100 people and inflicted 35 billion yuan (HK$44 billion) in losses across the country so far this year, according to a report by a state-owned newspaper.

And the downpours were forecast to continue across the country's south until Wednesday, with the China Meteorological Administration issuing a yellow alert for the region, indicating that up to 50mm could fall in a six-hour period,Economic Information Daily reported on Thursday.

Zhejiang, Fujian, Jiangxi, Guizhou and Guangxi provinces are also expecting heavy rain.

The report attributed the severe conditions to El Nino.

More than 20 million people in 20 provinces have been affected, with 108 dead and 21 missing. And more than one million people have been evacuated and roughly 44,000 houses have collapsed. Some of the worst-affected areas are in Hunan, Sichuan and Fujian.

Torrential rain started to sweep across the Yangtze River, Huai River and Tai Lake regions last Friday, with a 210,000 sq km area recording 50mm of falls since then. The Tai Lake area has received an average of 112mm of rain and the lower reaches of the Yangtze River 110mm.

David Fuller's view

It looks like we are unlikely to see a third consecutive year of generally good weather for global crops.  Too much water followed by the prospect of hot, dry weather in many agricultural regions is lifting agricultural prices, which Eoin and I have commented on earlier this week.

Agricultural prices are leading what looks like potential base formation development in the CRB Continuous Commodity Index (Old CRB) and the CRB Index NYFE.  Recovery prospects will be confirmed when metals also rally from current depressed levels.

(See also Farmland Forecast from AG WEB)