The USDA’s Foreign Agricultural Service issued its “Grain: World Markets and Trade Report” and says China is now the biggest wheat importer in the world.
The report says China’s wheat imports are forecast up to 12 million tons this year, the country’s highest level of imports since 1995-1996, when imports totaled 12.5 million tons. China’s domestic grain prices have remained high given the country’s minimum support price policy and reduced auction activity amidst uncertainty surrounding the government’s COVID policies.
Chinese wheat prices have lingered around $450 per ton during the past year, while China’s corn prices averaged $400 per ton. FAS says competitive pricing has prompted China to import large volumes of both milling and feed-quality wheat. Australian wheat is especially competitive following three consecutive years of record crops.
China continues to aggressively import Australian wheat supplies, with July through February wheat imports up 66 percent compared to the previous year.