What is going on with China s five consecutive large scale purchases of U.S. wheat?

Mondo Health Updated on 2024-01-29

Recently, China has been rightU.S. wheatThe large-scale purchase has attracted a lot of attention. Since October this year, China has made five consecutive purchases of large quantitiesU.S. wheat, totaling more than 1 million tons, an increase of 64% over the same period last year. This raises the question of why in the countryWheatIn the case, China still imports in large quantitiesU.S. wheatWhat about it?

Judging from the imported varieties, nearly 1 million tonsU.S. wheat, nearly 80% areSoft red winter wheatSoft red winter wheatIt has a low protein content and is mainly used to make bread, pastries and biscuits. And in the past two years, the demand for feed has increased significantly. On the one hand, yesHogsThe rapid growth of production capacity has led to a surge in demand for feed;On the other hand,CornFeed costs are rising. Therefore, substitution is neededCornof Feed**,Soft red winter wheatbecame an ideal choice.

Recently, a large number of imports have been madeU.S. wheatThere are also political factors. There is constant friction between China and the United States, but the two countries cannot completely decouple. China's position in the global market is becoming more and more important, while the U.S. economy is under greater pressure. Therefore, in order to promote the recovery of the two countries, China and the United States signed a $1 billion grain agreement in October this year, which includes imports from the United StatesCornSoybeansWheatand other crops.

Although domestic food prices are rising, the grain market is volatile and there are many factors that affect it. GeopoliticsFactors such as conflict and extreme weather can trigger significant volatility in food markets. In the past two years, countries around the world have been increasing their food reserves to prevent possible food shortages. ImportsWheatThis growth has allowed China to replenish its grain reserves and cope with possible market fluctuations.

ImportsWheatThe continuous growth has had a certain impact on the domestic market. Although the proportion of imports is not high, it is internationalWheat**Perennially lower than domestic**, and domesticWheatThe market weakened. Therefore, importsWheatof the increase to the domesticWheatThe market has brought some pressure. In addition, importsWheatMore used in the field of feed, withCornCompetition was formed, which further increased domesticCornpressure.

By serial purchases in ChinaU.S. wheatThe reasons for the analysis, we can see, importsWheatThe breed has adapted to the shift in domestic feed demand;Political factors and the recovery of ** contributed to the food between China and the United States;Reserve demand and the volatility of food markets have also increased importsWheatneeds. However, importsWheatto the countryWheatThe market has had an impact, especially in theWheatIn the case of importsWheatThe massive increase has brought more uncertainty to the market. In the future, we need to continue to focus on the countryWheatchanges in the market to better respond to possible market fluctuations.

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