China cancelling more US wheat shipments than ever

China canceled another batch of US wheat export shipments, adding to an already record number of cancellations that have weighed on Chicago futures, reports Bloomberg. The US Department of Agriculture in a Monday statement said private exporters exited purchases of 264,000 metric tons of US soft red winter wheat to China. It was the third straight session with such an announcement, bringing the cancellation total to 504,000 tons, the most in USDA data going back to 1999.

Wheat futures fell as much as 2.7% to $5.235 a bushel after the announcement, the lowest intraday level since August 2020, before prices turned higher.

“Those cancellations show that China can get wheat cheaper from others,” said Ben Buckner, chief grains analyst for AgResource Co.

Tags: US, wheat, purchases, shipments, soft red winter wheat, canceled, China, export