China’s Waning Hunger for Grain Spells Trouble for World Market
Traders report a significant downturn in China’s overseas wheat and corn purchases, potentially straining global grain markets accustomed to robust demand from the top agricultural importer. Notably, Chinese buyers have refrained from major purchases for months, attributing this trend to remarkably low domestic prices. This pattern is expected to persist into the third quarter, according to anonymous sources familiar with the matter.
China’s appetite for overseas wheat and corn is dwindling rapidly, which is likely to heap pressure on world grain markets that have grown accustomed to robust demand from the world’s top agricultural importer.
Buyers in China haven’t been observed making any major purchases for a couple of months, according to a number of traders. With domestic prices so low, that trend is likely to continue through the third quarter, they said, declining to be identified discussing sensitive commercial matters.
Source Link : https://www.bloomberg.com/news/articles/2024-06-12/china-s-waning-appetite-for-grain-spells-danger-for-world-market
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