China is taking over our wheat.

Grain | 7th March 2024 | By Andrew Whitelaw

The Snapshot

We have written a lot about the increase in the volume of grain going to China. Since 2020, China has been buying huge volumes of grain from all over the world. The increase in volume.

The first chart below shows the huge increase in volume that China has been taking during the past four years. A large chunk of this has been from Australia.

Traditionally, the biggest customer for Australian wheat has been Indonesia. However, recent years have seen China take over the mantle for wheat exports.

Indonesia is going to be important for Australian agriculture, which we wrote about in this article (click here), but China has had a monstrous demand in recent years.

There is speculation about why grain imports have increased;

  • Are there stocks lower than reported?
  • Have their crops been less successful?
  • Are they using more grain due to the move to a more professional pork industry.

The bigger volumes that China buys, the better. The increased demand for wheat is beneficial.