March 5, 2007

China may be short of 3 million tonnes of wheat this year

China's wheat market in 2007/2008 may have a shortfall of 3.15 million tonnes of wheat this year as more land is devoted to rapeseed cultivation and bad weather delayed sowing in some regions, traders said.

The estimates were  based on reports that China's wheat sowing area and unit yield of most major winter wheat producing provinces would drop in 2007/2008. The report, by China's State Cereals and Oil Information Centre offered a wheat market balance analysis report for 2007/2008.

Sowing activities in major wheat-producing areas like Hebei and Shandong have been hampered by bad weather, while in Jiangsu and Anhui, more acreage devoted to rapeseed has meant less for wheat.

The report thus concluded that China's wheat output would fall 3.46 million tonnes this year to 99.5 million tonnes.

Exports are expected to take another 1.5 million tonnes.

With imports expected to remain at 600,000 tonnes and domestic consumption at 101.75 million tonnes, this meant that China would be likely to be short of 3.15 million tonnes of wheat for 2007/2008.