By Michael Hogan, Peter Hobson and Gus Trompiz
HAMBURG/CANBERRA/PARIS (Reuters) -Chinese language patrons purchased between 400,000 and 500,000 metric tons of wheat from Australia and Canada in latest weeks, merchants mentioned, as warmth threatens to wreck crops in China’s agricultural heartlands.
China is the world’s high wheat grower and likewise imports giant quantities of grain when home provide falls wanting demand.
Earlier this week, Henan province, which grows a couple of third of China’s crop, issued a danger warning as sizzling, dry climate threatened the wheat rising in its fields.
Chinese language patrons have bought 4 or 5 55,000-ton shipments of wheat from Australia for supply in July or August and round 200,000 tons from Canada, sources at two main buying and selling corporations in Australia mentioned. The wheat is of milling high quality.
The bookings from Australia had been the primary made by China from the nation since final 12 months, mentioned one of many merchants.
COFCO, the state-owned Chinese language agency that handles many of the nation’s wheat imports, didn’t instantly reply to a request for remark.
China has in recent times been one of many world’s largest wheat importers, shopping for in round 11 million tons value $3.5 billion in 2024. Australia and Canada are sometimes its largest suppliers.
However shipments slowed sharply after China reaped giant wheat and corn harvests final 12 months and have since remained low.
China delayed or redirected shipments from Australia earlier this 12 months and imported lower than 1,000,000 tons of wheat within the seven months to March 31, Chinese language customs knowledge accessed via Commerce Information Monitor present.
One of many sources mentioned their firm had lowered its forecast of Chinese language 2025 wheat manufacturing by round 5 million tons however there was no assure that extra purchases would comply with as a result of China has giant wheat inventories.
“China is properly self-sufficient in feed grains this crop 12 months with heavy shares,” mentioned Rod Baker, an analyst at Australian Crop Forecasters in Perth, including that faltering financial development in China was additionally miserable demand for grains.
Speak of Canadian wheat gross sales to China has echoed round agricultural enterprise circles in Winnipeg, Canada’s grain business capital, based on merchants. Few concrete particulars on the gross sales have emerged.
Chinese language patrons would have prevented shopping for U.S. wheat on account of tariffs and the commerce struggle between Washington and Beijing, one dealer mentioned. China prior to now has been a high vacation spot for U.S. wheat gross sales.
The drop-off in Chinese language imports earlier within the present 2024/25 season had contributed to subdued worldwide wheat costs, with benchmark futures in Chicago nonetheless close to a four-year low touched final July.
Source link