By Naveen Thukral and Peter Hobson
Singapore/Canberra (Reuters) – China has delayed the import of up to 600,000 tonnes mainly Australian wheat and offered a number of these loads to other buyers, because ample domestic supplies are reducing demand in the best buyer of the grain, two trade sources with direct knowledge of the case said.
China accounted for 6% of global wheat imports in the year until June 2024, according to data from the US Department of Agriculture. With its major role in the market, the lower intake of the country can put pressure on the wheat prices in Chicago, which remain below $ 6 per bushel after a four -year low of $ 5.14 in July. [GRA/]
The country is well filled after abundant corn and wheat harvests and to support the local prices that have fallen as a result, it does not want a new wheat until April, according to the sources.
One of the sources, a trader -based trader at an international company that sells the US and Australian wheat in Asia, said he had direct knowledge of four shipments with around 240,000 tons, three from Australia and one from Canada, that Chinese buyers tried To continue selling in Southeast Asia.
The trader said that he had heard from other traders that a total of around 10 ships from Australia and Canada were postponed, with sold, with around 60,000 tons of wheat each.
“China has postponed the delivery time of various wheat forces that would be sent from Australia and Canada,” he said.
“There are enough stocks on the Chinese market and their local prices have fallen.”
A source with a large grain trader in Australia said that he had direct knowledge of two wheat costs booked for delivery to China in February, one of which was postponed until April.
“The others sails, but the buyer plans to distract a lump (from the grain on board) to Thailand.”
China has delayed or diverted eight to 10 Australian shipments that have been booked for delivery in January or February and has not booked shipments for March, he said.
“China just doesn't want anything that appears until April,” he said.
At the beginning of last year, Chinese wheat importers canceled around 1 million tonnes of Australian wheat forces, because the growing world stocks lowered prices.
Nevertheless, in the first three months of 2024, China imported 1.7 million tonnes of wheat from Australia, compared to 2.5 million tons in the same period a year earlier, and 923,000 tonnes from Canada, an increase of 783,000 tons a year earlier, according to Chinese. Accessible with the help of trade data monitor.
