by PressWheat Production in China: Overview of the 2020/2021 segment
What will be the production of wheat in China this season
Experts from IGC have made a forecast for the cereals market. It is expected that the production of wheat in China in the season 2020/2021 will increase to 135 million tons. In the previous period, this figure was by 1.4 million tons lower.
According to statistics, the volume of grain stocks in the country at the beginning of the current season was 130.2 million tons, 10.4 million tons more than in 2019/2020, and 113.8 million tons more than in 2018/2019.
Wheat supply also increased to 272.6 million tons, up from 260.2 million tons last period. And the new figures by 0.5 million tons exceeded the figures that experts called in the September report.
As for import supplies, China plans to buy about 7.4 million tons of grain, which is 0.7 million tons more than it was bought last season. In the previous report, this figure was 6.9 million tons of crops.
Export of wheat from China is estimated at 1.3 million tons of grain, this figure is slightly higher than what was sold by the country in the previous period.
According to forecasts, the consumption of wheat in the domestic market of China will amount to 132 million tons, compared to the previous season, the volume will increase by 3.2 million tons. In the current period, the final stocks of cereals will increase by 9.1 million tons to almost 140 million tons.
One of China’s agricultural suppliers is Australia. Recently, however, trade relations between the countries have become strained. The reason was a threat from Beijing to ban the supply of wheat and other crops from this country. It is worth noting that the PRC is not a key importer of crops from Australia; last season, exports accounted for only 10% of total supplies to China. Beijing has not yet explained the reasons for a possible ban, but according to experts, such restrictions may affect the cooperation of the countries in other segments.
At the same time, China plans to increase the volume of supplies from the United States and the Black Sea region. The maximum volume of purchases from the USA this season amounted to 1.47 million tons, which was a record for the last 5 years. Thus, Beijing has become the largest buyer of U.S. grain, ahead of Japan and Mexico.
It should be noted that Australia is among the leaders of exporters on the world market, it sells most of its wheat to Southeast Asia.