Reuters contributors Dominic Patton and Naveen Thukral report in their article that “Chinese surpluses of cheap wheat are replacing significant amounts of corn in China's huge animal feed market. According to feed manufacturers and analysts, cheap wheat is crowding out soybeans and corn from the national feed market, which is significantly reducing demand for imports.
Original content
The issue is price, as wheat has become cheaper than corn and soybeans. China's shift from corn and soybeans to wheat comes at an unfortunate time for Brazil and the US, the top suppliers of soybeans and corn to the world's largest buyer of both crops. Brazil produced a record soybean crop this year, but shipments to China are currently lagging behind last year's numbers. Meanwhile, China has canceled more than 800,000 tons of US corn orders in recent weeks as buyers wait for cheaper options later this year. In addition, China, which is among the most productive countries in terms of its own wheat harvest, is expecting record numbers this year (harvesting has already begun this month), but also continues to buy huge amounts of wheat from abroad, especially from Australia. Thus, in China, the total import of wheat in the amount of 6 million tons in the first four months of this year has already exceeded last year's figures by 61%. However, plans for a national wheat record have ...
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