April 9, 2013

China has acquired almost one million tonnes of wheat from the US as prices decline 30% from a four-year high reached in July 2012.

Wheat jumped as much as 1.4%.

On April 4 2013, China ordered 14 to 16 cargoes of soft red winter wheat from the Gulf of Mexico. Panamax-sized vessels that carry wheat typically take cargoes weighing about 60,000 tonnes.

Imports may reach a "relatively high level" in the 2013-2014 marketing year, after reaching a projected three million tonnes in the current year.

US soft red winter wheat, including cost and freight, was quoted between US$325 and US$330 per tonne on arrival at Chinese ports on April 5. At Guangzhou, the price of domestically produced Jiangsu red wheat cost about US$32.24 more.

Wheat for May delivery added as much as 1.4% to US$7.0875 a bushel on the Chicago Board of Trade and was at US$7.06 in Singapore on volume almost double the 100-day average for that time.