February 18, 2004

China Winter Wheat Harvest Lowest In 20 Years

China is expected to import more wheat in coming months, as the country experienced its lowest winter wheat harvest in about 20 years. 

The expected output cut comes as a Chinese delegation visits the United States to discuss more wheat purchases, and despite Beijing's campaign to ramp up wheat production as high cotton prices spur an increasing shift away from the grain.

China's output of winter wheat is expected to fall to around 78 million tonnes from 80.6 million tonnes a year ago.

"There was about a two percent fall in acreage, resulting in a lower output," said an analyst at the state-backed National Grain and Oils Information Centre.

A Chinese official with the group visiting the United States has said the country would consider buying more U.S. wheat, depending on price, quality and supply.

Late last year, the United States began pressuring China to ratchet up its imports of American goods to close a large trade gap between the two countries. China quickly responded, announcing deals to buy U.S. airplanes and agricultural goods.