Record high temperatures and drought in north-west and east China, particularly in the key grain producing region of Shandong province, are posing a threat to corn production in the world's second-largest producer and consumer. Farmers are facing water shortages, with some having to use wastewater and delay planting. The Agriculture Ministry has allocated funds for drought prevention measures and the situation is expected to impact grain output, potentially leading to higher purchases by exporters and increased global prices and food inflation. The drought, coupled with the anticipated La Nina weather pattern, could further damage crops.