Exclusive-China buys Canadian, Australian wheat as heat hits crop, traders say

By Michael Hogan, Peter Hobson and Gus Trompiz

HAMBURG/CANBERRA/PARIS (Reuters) -Chinese buyers bought betwixt 400,000 and 500,000 metric tons of wheat from Australia and Canada successful caller weeks, traders said, arsenic vigor threatens to harm crops successful China’s cultivation heartlands.

China is the world's apical wheat grower and besides imports ample amounts of atom erstwhile home proviso falls abbreviated of demand.

Earlier this week, Henan province, which grows astir a 3rd of China's crop, issued a hazard informing arsenic hot, adust upwind threatened the wheat increasing successful its fields.

Chinese buyers person purchased 4 oregon 5 55,000-ton shipments of wheat from Australia for transportation successful July oregon August and astir 200,000 tons from Canada, sources astatine 2 large trading firms successful Australia said. The wheat is of milling quality.

The bookings from Australia were the archetypal made by China from the state since past year, said 1 of the traders.

COFCO, the state-owned Chinese steadfast that handles astir of the country's wheat imports, did not instantly respond to a petition for comment.

China has successful caller years been 1 of the world's biggest wheat importers, buying successful astir 11 cardinal tons worthy $3.5 cardinal successful 2024. Australia and Canada are typically its biggest suppliers.

But shipments slowed sharply aft China reaped ample wheat and maize harvests past twelvemonth and person since remained low.

China delayed oregon redirected shipments from Australia earlier this twelvemonth and imported little than a cardinal tons of wheat successful the 7 months to March 31, Chinese customs information accessed done Trade Data Monitor show.

One of the sources said their institution had lowered its forecast of Chinese 2025 wheat accumulation by astir 5 cardinal tons but determination was nary warrant that much purchases would travel due to the fact that China has ample wheat inventories.

"China is good self-sufficient successful provender grains this harvest twelvemonth with dense stocks," said Rod Baker, an expert astatine Australian Crop Forecasters successful Perth, adding that faltering economical maturation successful China was besides depressing request for grains.

Talk of Canadian wheat income to China has echoed astir cultivation concern circles successful Winnipeg, Canada's atom manufacture capital, according to traders. Few factual details connected the income person emerged.

Chinese buyers would person avoided buying U.S. wheat owed to tariffs and the commercialized warfare betwixt Washington and Beijing, 1 trader said. China successful the past has been a apical destination for U.S. wheat sales.

The drop-off successful Chinese imports earlier successful the existent 2024/25 play had contributed to subdued planetary wheat prices, with benchmark futures successful Chicago inactive adjacent a four-year debased touched past July.