China Buys 1 Million Tons U.S. Wheat After Price Drops
(Corrects marketing year in 3rd paragraph, price difference to Chinese wheat in 4th paragraph.)
China, the world’s biggest consumer of wheat, bought almost 1 million metric tons from the U.S. as prices slumped 30 percent from a four-year high reached in July, state-owned researcher grain.gov.cn said. Wheat jumped as much as 1.4 percent after the news.
The country on April 4 ordered 14 to 16 cargoes of so- called soft red winter wheat to be shipped from the Gulf of Mexico in the second half, the Beijing-based researcher wrote in a report today. Panamax-sized vessels that carry wheat typically take cargoes weighing about 60,000 tons.
Imports may reach a “relatively high level” in the 2013-2014 marketing year, after reaching a projected 3 million tons in the current year, according to the report.
U.S. soft red winter wheat, including cost and freight, was quoted between $325 and $330 per ton on arrival at Chinese ports on April 5, equivalent to between 2,430 yuan a 2,470 yuan a ton after tax, according to the report. At Guangzhou port, the price of domestically produced so-called Jiangsu red wheat cost about 200 yuan more, according to grain.gov.cn., which is a unit of the China National Grain & Oils Information Center.
Wheat for May delivery added as much as 1.4 percent to $7.0875 a bushel on the Chicago Board of Trade and was at $7.06 at 11:33 a.m. in Singapore on volume almost double the 100-day average for that time.
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