Unique-China buys Canadian, Australian wheat as warmth hits crop, merchants say

[ad_1] 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 massive 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 yr, 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 greatest wheat importers, shopping for in round 11 million tons value $3.5 billion in 2024. Australia and Canada are sometimes its greatest suppliers.

However shipments slowed sharply after China reaped massive wheat and corn harvests final yr and have since remained low.

China delayed or redirected shipments from Australia earlier this yr and imported lower than one million tons of wheat within the seven months to March 31, Chinese language customs information accessed by way of Commerce Knowledge 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 massive wheat inventories.

"China is nicely self-sufficient in feed grains this crop yr 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, in accordance with merchants. Few concrete particulars on the gross sales have emerged.

Chinese language patrons would have prevented shopping for U.S. wheat attributable to tariffs and the commerce conflict between Washington and Beijing, one dealer mentioned. China previously 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.

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Together with climate dangers to China's upcoming harvest, engaging costs could have lured Chinese language importers again into the market because the 2025/26 season approaches, merchants mentioned.

BARLEY

Chinese language importers additionally booked a considerable amount of barley, in accordance with merchants.

Some mentioned that six panamax bulk carriers carrying round 360,000 tons of French or Ukrainian new-crop barley had been bought for supply in July or August, with others placing the quantity a lot increased at round 1 million tons, additionally for cargo this summer time.

"Chinese language wheat and barley import shopping for has been very quiet previously yr and these are the primary main offers I've seen in lots of months," a German dealer mentioned.

Feed barley purchases with non-compulsory origin had been from Ukraine or France. The offers had been completed at a worth of round $250-$254 a tonne delivered to China, one dealer mentioned.

(Reporting by Michael Hogan in Hamburg, Peter Hobson in Canberra, Gus Trompiz in Paris, Ed White in Winnipeg; Extra reporting by Ella Cao in Beijing; Modifying by Simon Webb and Louise Heavens)