China is currently the world’s top importer of corn and soybeans. And if wheat is added to the extensive list of commodities markets dominated by Chinese buyers, the nation is now poised to overtake Egypt and Turkey as the biggest buyer of wheat in the year through June, Chinese and US official data show.
Purchases exceeded 12 million tons in the first 11 months of the marketing year, which runs through June. More than half of those cargoes were supplied by Australia.
Imports of the food staple accelerated above 1 million tons a month from October, before peaking at a record 1.68 million tons in April. The US Department of Agriculture is forecasting another 12 million tons of Chinese imports in 2023-2024 after damage to the latest harvest left a lot of the crop suitable only for animal feed.
Heavy rains in Henan, China’s biggest growing region, have affected the quality and pushed up prices of the high-protein grain used to make bread and noodles. That should benefit wheat farmers and shippers around the world, while potentially hurting demand for other feed ingredients like corn and soybeans as more wheat gets swapped for livestock rations.
“Imports have been quite profitable and lots of cargoes were booked,” said Zhang Zhidong, senior analyst with Guolian Futures Co. “Domestic grains are expensive and stockpiles are falling, so there is demand.”
Purchases should stay elevated if prices remain favorable and buyers need to replenish their reserves, said Rosa Wang, an analyst with consultancy Shanghai JC Intelligence Co.
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