China plans to increase its wheat stockpile by purchasing more from domestic producers as the world’s top producer and consumer of wheat seeks to secure supply amid recent weather-related damages affecting global production.
Adverse weather conditions have impacted crops in Russia, the world’s largest wheat exporter, and both drought and excessive rains have threatened yields in the European Union. These disruptions have raised concerns about lower global supplies in the latter half of 2024, a crucial period for production and marketing.
Wheat buyers in Asia, Africa, and the Middle East—regions that collectively account for two-thirds of global wheat imports—have been caught off guard with limited supply following the weather disruptions that unexpectedly drove prices up since April.
China’s state-owned agricultural stockpiler, Sinograin, announced on Wednesday (June 5) that it and its affiliated units will increase purchases of wheat produced in 2024 from major regions for its reserves, having already started buying in some areas.
In recent months, Chinese buyers have canceled wheat shipments from the U.S. and Australia due to price fluctuations.
Additionally, in January, Sinograin announced plans to increase its purchases of domestic corn.
This year, China, the world’s largest grain importer, significantly expanded its budget for stockpiling grains and edible oils by 8.1% and implemented its first food security law aimed at achieving “absolute self-sufficiency” in staple grains.
