Sources Report China’s Delay or Diversion of 600,000 Tons of Wheat Imports

China is holding off on importing around 600,000 metric tons of mostly Australian wheat due to ample domestic supplies, according to trade sources familiar with the situation. This delay could affect global wheat prices as China, accounting for 6% of global imports, reduces its intake. The country plans to defer new wheat shipments until at least April to support local prices, which have dropped.

A Singapore-based trader revealed that Chinese buyers are looking to resell around 240,000 metric tons of wheat from Australia and Canada to Southeast Asia. The delay or redirection of up to 10 Australian shipments to China, originally scheduled for January and February, has impacted the market. China's COFCO, responsible for most of these actions, is shouldering the costs of holding back grain and will manage any reselling profits or losses.

China's decision to cut back on wheat imports is linked to its surplus corn harvest, which covers feed needs, leaving little demand for imported wheat for feed purposes. The country's focus is shifting towards importing wheat for flour production. Sinograin, a state stockpiler, plans to expand purchases of domestic corn in 2024.