China's demand for cereal and oilseeds remains near record highs this year, fueled by lower global prices, domestic output shortfalls, and the need to replenish stockpiles. Despite recent cancellations of wheat imports from Australia and the US, China's imports, especially from Australia, have surged, maintaining its position as the world's largest soybean buyer, mainly from Brazil and the US. The increase in barley imports, nearly tripling in the first two months of the year after lifting punitive duties, underscores China's robust import activity. Factors such as improved crush margins, efforts to stockpile food, and a growing middle class contribute to the sustained growth in imports, with China leveraging high-quality wheat for blending and imported corn and barley for animal feed.
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Original content
Cereal and oilseed imports to China, the world's biggest buyer of farm goods, will remain near record highs this year despite a recent spate of cancellations as lower global prices and a domestic output shortfall prompt purchases, reported Reuters. China's wheat imports from Australia in January and February this year have nearly quadrupled from the same time last year, the latest customs data show. That trend should continue even after Beijing cancelled or postponed 1 million metric tons of Australian wheat last week. The cancellations, along with those for about 500,000 tons of US wheat, had raised concerns of flagging Chinese demand, which because of its outsized role in global agriculture markets could have led to lower prices. But traders and analysts say the cancellations will not impact overall demand as lower wheat prices will spur buying, along with more government funds allocated to boost grain and oil seed stockpiles. "China's imports of wheat and barley from Australia ...
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