July 12, 2013
China, the world’s top wheat grower, is expected to import the highest volume of the grain in a decade in 2013/2014 after its domestic harvest was damaged by bad weather, according to a forecast by an official think tank. China’s wheat imports in the year beginning June is forecast at 5 million tonnes, up 73 percent from 2.89 million tonnes the previous year, according to the forecast by China National Grain and Oils Information Centre (CNGOIC).
China bought more than 1.3 million tonnes of US wheat in early July in a flurry of deals after US prices fell to near the lowest levels in a year. The damage to China’s harvest has kept local prices strong, spurring the call on imports. China’s import buying has supported US wheat futures , which rose for a fourth consecutive session on Thursday to trade around the highest in two weeks.
China’s state grain stockpiler China Grain Reserves Corporation (Sinograin) has stopped buying wheat from the country’s top wheat region of Henan to cool local prices that spiked after rains damaged crops. Domestic wheat is trading at it highest in six months. Rains in late May damaged domestic wheat quality in Henan, where about 10 million tonnes had to be downgraded to feed-use purpose, analysts estimated. Courtesy Reuters
Published in ZaraiMedia.com