Two trade sources who have direct knowledge of this matter say that China has delayed the imports of up 600,000 metric tonnes of wheat, mostly Australian, and offered some of those cargoes to buyers other than itself as domestic supplies are reducing demand in the top grain buyer in the world.

According to U.S. Department of Agriculture statistics, China imported 6% of the world's wheat in the year up to June 2024. China's outsized market share may cause the lower imports to pressure Chicago wheat benchmark prices. The price of a bushel is still below $6 after hitting a 4-year low in July.

Sources said that the country has a large supply of wheat and corn after a plentiful harvest. To support local prices, which have dropped as a consequence, it doesn't want to receive new wheat until April.

One of the sources is a Singapore-based trader for an international company which sells U.S. wheat and Australian wheat to Asia. He said that he was aware of four shipments, each carrying approximately 240,000 metric tonnes, of which three were from Australia and another from Canada. Chinese buyers are attempting to resell these shipments in Southeast Asia.

The trader reported that he heard from other traders about around 10 ships, each carrying approximately 60,000 tons wheat from Australia and Canada.

He said that China had delayed the delivery of wheat cargoes from Australia and Canada.

The Chinese market is flooded with products and the local prices are down.

One source from a major grain dealer in Australia confirmed that he was aware of two wheat shipments scheduled for delivery in China in February. However, one shipment has been delayed until April.

The buyer of the other ship plans to divert some grain (onboard) to Thailand.

He said that China had delayed or redirected eight to ten Australian shipments booked for January or February. No shipments were scheduled for March.

He said that "China doesn't want to see anything until April."

As world stocks grew, Chinese importers of wheat cancelled or delayed about 1,000,000 metric tons in Australian wheat cargoes.

According to Chinese trade data obtained using Trade Data Monitor, China imported 1.7 millions tons of wheat in the first quarter of 2024. This is down from 2.5million tons in the same time period last year, and 923,00 tons from Canada.

In recent years, Australia has been the main supplier of first quarter wheat to China.

The source in Australia stated that China's COFCO (the state-run company which imports most of the delayed or redirected cargoes) is responsible for the cost of delaying shipments. This includes charges to hold grain and any profit or loss from the resale of grain.

COFCO didn't immediately respond to a request for comment sent via email.

"China wants its farmers to be protected. They have plenty of corn after a successful corn harvest. The wheat that they imported for both feed and flour is now just flour," said the trader from Australia.

Sinograin, China's national stockpiler, announced on Monday that it will add new stockpiling locations in the northeast China in order to increase purchases of domestic corn harvested by 2024.

(source: Reuters)