China has upset the market by canceling wheat supply agreements with the US and Australia

Chinese importers have canceled previously concluded agreements for the supply of large shipments of wheat from the United States and Australia, which upset traders.

Thus, the USDA reports on China's refusal to supply 504,000 tons of American wheat, which is the largest canceled batch in the entire history of observations.

The delivery of 1 million tons of wheat from Australia was also canceled or postponed indefinitely.

On this news, on April 9, wheat quotes on the SWOT exchange fell by $2.9/t to $204.9/t, and on Euronext - by €2.75/t to €201/t.

Market participants believe that Chinese buyers are reneging on previously concluded expensive contracts to buy new batches at much lower prices. The country's need for imported wheat grew after last year's flood reduced the quality of wheat in Henan province, China's main wheat-growing region.

At the same time, China does not increase imports of cheap wheat from the Russian Federation, the quality of which does not meet its requirements, but increases wheat purchases from France and Kazakhstan.