November 18, 2003

Wheat Talk Between China & US To Commence in Early December
 

A delegation of Chinese grain buyers will visit the United States sometime before the arrival of China's Premier Wen Jiabao in early December, a U.S. wheat industry official told Reuters on Monday.

The delegation will visit Washington amid speculation that China could import up to 3 million tons of wheat from major exporting countries like the United States, Canada, or Australia.

"We have invited COFCO" -- China's government-run Cereals, Oils and Foodstuffs Import and Export Corp -- to the United States prior to Wen's visit, said Dawn Forsythe, spokeswoman for U.S. Wheat Associates, which promotes American exports of wheat.

She said a "wheat delegation" from COFCO has accepted the invitation. The officials will be in the United States "for a couple of days to a week," Forsythe said.

But she said COFCO has not provided any details on whether it wants to buy U.S. wheat or how much it might want to import. A separate group of Chinese officials, which focuses on soybean imports, is expected to be in Chicago on Friday.

Wen is supposed to be in the United States during the first week of December.

Last week, a Chinese official visiting Washington said his government would buy wheat as part of "large-scale" purchases of farm commodities.

A huge demand of US wheat from China leads to the Bush administration spending a few months time to pressure Beijing to reduce the imbalance in bilateral trade. There also is speculation that China's grain reserves are beginning to run low.

The U.S. trade deficit with China is expected to surpass last year's $103 billion record, adding pressure on the Bush administration to boost exports, especially in the job-intensive manufacturing sector.

Forsythe said Washington is expected to be "one of the stops" for the COFCO visitors. She said she did not know whether they would visit other U.S. cities.