Sluggish demand: Chinese wheat importers have shown little interest since this year’s crop supplies hit the market. | Photo Credit: Reuters
China’s wheat buying spree is expected to slow in the second half of 2024, as rising domestic production and falling flour consumption outweigh import demand in the world’s biggest grain consumer.
Traders and analysts said China has made record purchases of wheat in recent years and the reduction in purchases is expected to put additional pressure on global prices, which are trading at their lowest level in four years despite abundant supplies.
China’s wheat imports from July to December are estimated at between 2 million and 4 million tonnes, down from 4.09 million tonnes in the second half of 2023, according to surveys by one China-based and two Singapore-based grain traders.
“There has been a lack of interest from Chinese wheat importers since this year’s crop supplies hit the market,” said a Singapore-based trader working for an international company that ships grain to China.
“They are booking fewer inventories. China demand is unlikely to be as strong as we have seen in the past.”
China’s summer wheat output rose 2.7% from a year earlier to a record 138.22 million tonnes, with quality improving as production efficiency reached near perfection.
According to customs data, China bought 10.08 million metric tons of oil between January and July, up 15.6% from a year earlier; the amount was bought mainly from the United States, France, Australia and Canada.
These imports, driven by fears of weather-related crop damage, exceed the wheat import quota allocated by Beijing for 2024, and the excess quantity will attract an import duty of 65%.