China bought as much as 650,000 tonnes of US wheat last week prompted by falling prices, a government think-tank said. This was the second large-scale purchase of US wheat by the world’s top wheat producer this year, bringing its total buying to about 1.5 million tonnes, the China National Grain and Oils Information Centre (CNGOIC) said on its website
The latest US wheat was bought at between $320 to $328 per tonne CIF for delivery from July to September. The US price was about 11.6 percent cheaper than domestic wheat, said the centre. Beijing is refilling its depleted state wheat reserves, while some state wheat quality was also deteriorating. Traders said Sinograin, the state stockpiler which made the purchases, was looking for another 2-3 million tonnes.
The US Department of Agriculture (USDA) on Friday confirmed only 180,000 tonnes of US soft red winter wheat were sold to China, but traders expected more to be announced. Chicago Board of Trade wheat fell to a more than 1-month low last week after forecasts for crop-boosting rain in some areas. The centre last month reported that China bought 14-16 cargoes of US SRW wheat, which was confirmed later by the USDA.
