Leading importers in China have been asked to halt purchases of barley and sorghum

Published Sep 15, 2024

Tridge summary

Chinese officials have advised leading importers to cease purchasing barley and sorghum to address the domestic oversupply of these crops and increase prices. This recommendation will not impact already contracted supplies and will be in effect from November through the first quarter of 2025. China is a major global importer of both barley and sorghum, primarily for livestock feed and beer production. The move could negatively affect farmers in countries like the US and Australia, which are significant exporters of these crops. In the first seven months of the year, China's sorghum imports surged to 5.21 million tons, nearly doubling the previous year's imports, with the US providing over 80% of these imports.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chinese officials have suggested leading importers stop buying barley and sorghum, Bloomberg reported, citing sources familiar with the results of the meeting. The actions taken ahead of the harvest of this year's bountiful grain harvest in the country are an attempt to reduce the oversupply of the two crops in the domestic market in order to boost prices there. The cap will not apply to already contracted barley and sorghum supplies, affecting supply from November through the first quarter of 2025. China imports sorghum and barley for livestock feed, mostly as a substitute for corn, and high-quality barley is used in beer production. The authorities regulate the import of maize and wheat through a system of annual quotas, but no such ceilings have been introduced for barley and sorghum. In early 2024, traders were asked to limit maize imports after supply from domestic farmers rose. Currently, domestic corn, sorghum and barley prices are near their lowest level in more than 3 ...
Source: Sinor
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.