China Buys 1 Million Tons U.S. Wheat After Price Drops

08th April 2013

China, the world’s biggest consumer of wheat
China, the world’s biggest consumer of wheat

China, the world’s biggest consumer of wheat, bought almost 1 million metric tons from the U.S. as prices slumped 30 percent from a four-year high reached in July, state-owned researcher said. Wheat jumped as much as 1.4 percent after the news.

The country on April 4 ordered 14 to 16 cargoes of so- called soft red winter wheat to be shipped from the Gulf of Mexico in the second half, the Beijing-based researcher wrote in a report today. Panamax-sized vessels that carry wheat typically take cargoes weighing about 60,000 tons.

Imports may reach a “relatively high level” in the 2013-2014 marketing year, after reaching a projected 3 million tons in the current year, according to the report.

U.S. soft red winter wheat, including cost and freight, was quoted between $325 and $330 per ton on arrival at Chinese ports on April 5, equivalent to between 2,430 yuan a 2,470 yuan a ton after tax, according to the report. At Guangzhou port, the price of domestically produced so-called Jiangsu red wheat cost about 200 yuan more, according to, which is a unit of the China National Grain & Oils Information Center.

Wheat for May delivery added as much as 1.4 percent to $7.0875 a bushel on the Chicago Board of Trade and was at $7.06 at 11:33 a.m. in Singapore on volume almost double the 100-day average for that time.

To contact Bloomberg News staff for this story: William Bi in Beijing at

To contact the editor responsible for this story: Brett Miller at  Source Bloom Berg

Published: Zarai Media Team

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