October 25, 2012
China's Jan-Sept 2012 wheat imports reach seven-year high
China's wheat imports for January to September 2012 have risen to 3.21 million tonnes, a seven-year high since 2005.
However, higher global prices due to bad weather in the US and Australia may cut purchases for the 4th quarter of 2012.
China is the world's biggest wheat producer, but a poor harvest, and higher domestic prices due to stockpiling in the beginning of the year, boosted wheat imports in the first nine-months of 2012 to 3.21 million tonnes, the highest since 2005, according to official data.
September imports, at 524,156 tonnes, were also almost triple the amount purchased in the same month a year ago, the data showed, as more Chinese mills bought high-quality foreign wheat to supply bakeries, their fastest-growing client.
"Mills have stepped up imports given tightening global supplies while the domestic harvest has also been damaged. High-quality Canadian wheat is favored by mills for blending," said an industry analyst.
China imported 1.25 million tonnes of wheat in 2011, and some analysts expected this year's imports to rise to as much as two million tonnes because of the drop in local production.
Higher prices, however, are likely to reduce purchases.
Drought in the US sent Chicago wheat prices soaring by nearly 40% since June, while dry weather is also threatening yields in Australia, the world's second-largest exporter, where output is forecast to fall by more than a quarter from last year.
"Imports in the next few months may slow down as overseas prices have jumped too high," said an analyst with an official think-tank.
He said China was likely to reduce its imports of lower quality, feed-grade wheat from Australia and also because a record domestic corn harvest meant more corn could be used for animal feed.
According to the data, China's corn imports in the first nine months surged 548% to 4.1 million tonnes. Most of the corn came from the US and the deals were signed in the first half of the year.
