October 18, 2010

China's grain imports fuel food-price hike

China's rising grain imports are adding to a jump in the cost of food, said Rob Subbaraman, an analyst at Nomura International Friday (Oct 15).

While Russia's ban on wheat exports following a drought in the country is often singled out as the cause for the recent surge in global food prices, China's grain buying is another reason, he said.

Chinese cereal imports climbed to one million tonnes in September, more than three times the amount a year earlier, according to the report.

"China is already a massive global importer of soy and looks like it may be heading in that direction for grain," Subbaraman added. "Demand for food in countries like China is grossly underestimated."