January 15, 2004

China To Import 3 Million Tons Wheat

China is expected to import three million tonnes of wheat this year, due to deficits in local supplies, a report from a government grain think-tank said Thursday.

"China's 2004 domestic wheat shortage is about 20 million tonnes," as stated in the report.

"The current plan is to import three million tonnes, including one million tonnes of wheat from Australia and 500,000 tonnes from Canada," it said. The official China Securities Journal said on Wednesday the country's wheat imports totalled 450,000 tonnes in 2003, down 29.2 percent from the previous year.

A government grain source said China would sign contracts to buy 1.0-1.5 million tonnes of U.S. wheat when the country sends a purchasing mission next month.

He said the wheat would be used to replenish state grain stocks, which have been shrinking due to lower-than-demand domestic production over past years.

The Chinese report followed an announcement by the U.S. Agriculture Department on Tuesday that private exporters had reported the sale of 1.04 million tonnes of U.S. wheat to China, including 740,000 tonnes for delivery in the 2004/2005 year.

The country has already announced it had agreed to buy 500,000 tonnes from Canada and one million tonnes from Australia.

China expects its 2004 wheat output to be slightly lower than 2003's output at 86.1 million tonnes, the lowest since 1989.