BEIJING: China’s wheat import (including durum) in the first half of 2017 was 2.62 million mt, up 48% year on year from 1.78 million, according to customs data released on Tuesday. Market sources attributed the strong import in 2017 to lower international pricing, which was weighed down by abundant global stocks in 2016-2017 (July-June), in addition to robust domestic demand unmet by domestic supply. US remained the largest wheat exporter to China for the second consecutive month in June, amid competitive prices, traders said. US exported 210,449 mt of wheat to China in June, down 27.17% month on month but nearly five times that a year ago. In H1 2017, US wheat accounted for 38.6% of China’s total wheat import, nearly tripling its market share from a year ago.
Australian wheat, which typically accounted for about half of China’s imported wheat before the US overtook as the largest supplier in May 2017, inched up its market share marginally by 2.19%, exporting a total of 1.26 million mt of wheat in H1 2017. In June, Australia exported to China 152,871 mt of wheat, down 2.93% month on month and nearly 30% lower from a year ago. The drop was attributed to substantial imports in the first quarter, which is typically the early marketing season in Australia. Meanwhile, China imported Hungarian wheat for the first time, after signing an agreement late last year. A small parcel of wheat — 208 mt — was imported in June, entering via Qingdao port, sources said, after the quarantine department confirmed the wheat was meeting the country’s strict phytosanitary requirement.
China is forecast to produce 130 million mt of wheat in 2017-2018, and harvesting in the major wheat-producing states across the northern plains has been completed. On July 13, the National Bureau of Statistics of China said that the world’s largest wheat producer harvested 127.35 million mt of wheat in 2016-2017, up 0.85% from a year ago. Wheat yield was recorded at 5.5 kg/hectare, up 1.9% from the previous season, NBS data showed. Wheat acreage planted was lower at 23.14 million hectare, down 1% from the last season owing to lower arable lands and inadequate underground water sources.
Extended rains in parts of southern Changjiang area from winter last year to early this year also delayed rice harvesting, affecting the wheat planting season. Moreover, farmers in Xinjiang area also shifted to higher-value crops such as cotton, which resulted in overall lower wheat planted area for 2017. Market sources said that although the quality of wheat produced this season was much better from the previous season, prices for the domestic premium wheat remained unchanged for new wheat, averaging at Yuan 3,100/mt ($444/mt) over June-July, while imported high-protein wheat from the US averaged at $310-$350/mt CFR Shanghai, buyers said.
