September 24, 2004

 

 

Canada Focus On China Wheat Sales Of 1.8 Million Tons

 

Canada hopes to sell 1.8 million tons of wheat to China this marketing year, similar to last year's level, the head of Canada's Wheat Board (CWB) said on Thursday. Canada is one of the world's top three wheat exporters.

 

Adrian Measner, the board's president and CEO, stated that sunny, warm weather this week should help Canadian farmers catch up on a harvest delayed by rain and one of the coldest summers on record.

 

By early this week, about 15 percent of wheat, durum and barley had been harvested, compared with about 60-70 percent in a normal year, the official said.

 

"The forecast is better right now ... We are hopeful that progress can be made this week and next week," he said. "It (the harvest delay) hasn't caused many delays in shipments. We have been able to work our way through reasonably well."

 

The CWB has a monopoly on wheat and barley exports from Canada's grain belt.

 

Asked about weather damage, Measner said: "The crop size is still good. We are looking for a larger crop than last year. At this point in time, the yield is good. But quality is going to be impacted."

 

Last week, another CWB official said in Canada that it had clipped its production forecast by 500,000 to 1 million tons from August 1 projections of an all-wheat crop of 24.3 million tons, up 10 percent from the 2003/2004 year ended on July 31.

 

Measner would not reveal details of 2004/2005 wheat deals sealed with China. The country has emerged as one of the world's top importers following years of shrinking harvests and large exports that reduced the country's once huge grains stocks.

 

"Last crop year to July 31, we did about 1.8 million tons of wheat business (with China). We anticipate that we would have a reasonable business this year," Measner said.

 

"We talked about a consistent programme in here for this year and in future years. That would be our target to have a similar programme (to last year)."

 

Chinese custom data showed Chinese wheat imports totalled 4.11 million tons during the first eight months of this year, up 1,951 percent from the same period a year ago. Imports from Canada, the top exporter to China for that period, were 1.66 million tons, up 976 percent.

 

Measner revised downwards his March prediction for long-term Chinese wheat imports of about 15 million tons a year. He added that he saw an annual supply gap of 5-10 million tons over the next five years.

 

The Chinese official Xinhua news agency said China's 2004 grains output would rise by 6 percent to 455.6 million tons. Its 2004 wheat output was to reach 88 million tons, with a winter wheat crop of 83.1 million tons, up 3 percent.

 

Beijing has turned around its past policy to promote grains production since early this year. Its 2003 harvest hit a 13-year low as farmers abandoned land to seek jobs in cities and switched to higher-return crops such as cotton and vegetables.