China’s rising grain imports are adding to a jump in the cost of food, said Rob Subbaraman, an analyst at Nomura International, in a research note today.
While Russia’s ban on wheat exports following a drought in the country is often singled out as the cause for the recent surge in global food prices, China’s grain buying is another reason, Subbaraman said.
Chinese cereal imports climbed to 1 million metric tons in September, more than three times the amount a year earlier, according to the Nomura report.
“China is already a massive global importer of soybeans and looks like it may be heading in that direction for grain,” Subbaraman said. “Demand for food in countries like China is grossly underestimated.”
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