FAS USDA: China To Increase Wheat Import And Decrease Corn And Sorghum Import

14 Feb, 2017
FAS USDA: China To Increase Wheat Import And Decrease Corn And Sorghum Import
In the current season (July - June) China has increased wheat import while decreasing corn and sorghum import, FAS USDA reports in its latest forecast.

Wheat export has increased to 4 mln tons (3.476 mln tons in the previous season). The growth is due to the high demand on behalf of millers and traders. China imported 1.4 mln tons of wheat between July and November 2016, mainly from the USA - 39% share, Australia - 33% share and Canada - 21% share.  Several lots of Canadian wheat will be delivered in China in the next few months. Corn import will be lower than the initial expectations - up to 2.0 mln tons (3.174) due to the lower price of domestic Chinese corn. The difference in price between the Chinese and American corn delivered in a Southern port is very small. Ukraine remains the main corn supplier for China. Sorghum import estimate has been lowered again down to 4.5 mln tons (8.284) due to the lower corn price.

In the current season, Mexico will cut grains import and export, FAS USDA projects. In the season, wheat yield in the country reached 4.6 mln tons versus 4.805 mln tons a year earlier, while corn yield reached 26.0 mln tons (25.971). Wheat import is expected to drop to 4.6 mln tons (4.805) while corn will be 13.4 mln tons (14.01). Wheat export will be 1.5 mln tons (1.568) and corn will be 1.0 mln tons (1.6).

Wheat export from Kazakhstan will go down in 2016 – 2017 (September - August) to 7 mln tons according to the latest forecast by FAS USDA. Wheat yield in the country this season is 15 mln tons (13.748), growth mainly due to bigger areas. Wheat export has gone down to 7 mln tons (7.6).