China rocked the grain market by canceling wheat supplies from the USA and Australia

Published Apr 13, 2024

Tridge summary

Chinese buyers have recently canceled large orders of wheat from the USA and Australia, impacting the global market. Specifically, cancellations included a record 504 thousand tons from the US and about 1 million tons from Australia, with the latter's delivery postponed indefinitely. This has led to a drop in wheat prices on major exchanges. The moves are seen as China's strategy to avoid expensive contracts amid a surge in demand for imported food wheat due to flooding in Henan province, opting instead to increase imports from France and Kazakhstan over Russian wheat due to quality concerns.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chinese buyers canceled large volumes of previously purchased wheat from the USA and Australia, which shook up the international market, Zerno On-Line reports. In particular, the supply of 504 thousand tons of wheat from the United States was canceled, which is the largest canceled volume on record. Australia experienced an even more significant loss - the delivery of about 1 million tons of Australian wheat was postponed indefinitely. For this reason, according to the results of trading on April 9, wheat prices fell to $204.9 (-$2.9) per ton on the CBOT exchange, and to 201 (-2.75) euros/t on the Euronext exchange. Market operators speculate that Chinese buyers are likely trying to avoid costly contracts signed in the past and are focused on purchasing new volumes at lower prices. In addition, demand for imported food wheat in China has increased after flooding last summer in Henan ...
Source: Agrosektor
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