In 2023, China increased wheat imports by 80% and reduced corn imports by 8%
In the first 4 months of 2023, China increased wheat imports by 80% against the background of lower prices compared to domestic supplies. Due to the replacement of wheat in fodder with fodder corn, the import of the latter decreased by 8.4% during the specified period.
According to the State Customs Service, from January to April, China purchased almost 6 million tons of wheat, which is 60% of the total exports for 2022. Approximately 60% of imported wheat was supplied from Australia, 19% - from Canada, 13% - from France, 8% - from the USA. In April, wheat imports increased by 141% compared to the corresponding period last year to 4.7 million tons. In addition, in the 4 months of 2023, soybean imports to China increased by 6.8%, while rice imports decreased by 39.7 %.
Chinese processors are replacing domestic wheat with imported wheat for use in animal feed, prompting the country to dramatically increase its purchases of standard white Australian wheat. It is likely that wheat imports will exceed the tariff quota of 9.6 million tons for the third year in a row, but given the high tariff rates for over-quota shipments, the excess will be insignificant.
Experts believe that the reason for the sharp increase in imports is a significant decrease in world prices for wheat, as well as the poor condition of wheat crops in the country. According to Reuters, in central China's Henan province, just days before harvest, downpours flooded wheat fields, leading to rising prices and concerns about the quality of the new crop. Due to the rains that have lasted for a week and a half in the south of Henan province, part of the wheat sprouted, and the other got sick with late blight. According to government forecasts, China should harvest a record wheat crop this year, but the amount of precipitation will increase in the coming days in western Henan province. The provincial government has promised help in speeding up the wheat harvest by providing fast delivery of harvesters and drying equipment to farms.
