China To Import Record Wheat Volumes In 2023

News in brief: China is set to import a record amount of wheat in 2023 due to domestic crop damage and global supply concerns, potentially boosting global wheat prices. Chinese wheat imports are projected to reach a record high of 12 million tons, with recent purchases from Australia and France contributing to the rise in global wheat prices.

China is on track to import record volumes of wheat this year, according to a news report, as rain damage to its domestic crop and concerns over dry weather in exporting countries is encouraging it to buy while prices are low.

Traders said China's aggressive buying behaviour could support global wheat prices, which have fallen more than a quarter this year due to abundant supplies from top exporter Russia.

China's wheat imports are expected to reach 12 million tons in 2023, up from 9.96 million tons in 2022, according to the US Department of Agriculture. This would be the highest level of wheat imports on record for China.

The heavy rains and floods in China earlier this year damaged the wheat crop, reducing yields and quality. In addition, there are concerns about dry weather conditions in some other major wheat exporting countries, such as Australia and the United States.

In related news, China bought around two million metric tons of new-crop Australian wheat in October 2023, for shipments starting in December. The country also reportedly booked 2.5 million metric tons of French wheat since September 2023, which is for December-March shipment, according to trading sources.

China's increased wheat imports are likely to have a positive impact on global wheat prices which have already started to recover in recent weeks, and they are expected to continue to rise.