China inks deals for 110,000 metric tons U.S. SRW wheat

China purchased more U.S. soft red winter (SRW) wheat this week in the country’s third large-scale purchase of the grain since early October, the U.S. Department of Agriculture (USDA) announced on Wednesday.

In a daily “flash” sales announcement, the USDA confirmed private sales of 110,000 metric tons to China for shipment in the 2023/24 marketing year which began June 1.

Those sales build on purchases of about 220,000 tons in the first week of October and 181,500 tons the following week in China’s strongest demand for U.S. SRW wheat in a decade.

Wednesday’s announcement comes as welcome news for U.S. farmers that have seen their wheat exports erode over recent years as rival suppliers, including top exporter Russia, have gained a larger share of the global market.

U.S. exports of all wheat varieties in the 2023/24 season are projected at their lowest in more than 50 years, according to the latest USDA forecast.

The sales announced on Wednesday would bring China’s total U.S. wheat purchases for the current season to more than 920,000 metric tons, the bulk of which are for SRW wheat.

SRW wheat is a lower protein variety often used to make flat breads, pastries and crackers. It can also be used as an animal feed.

Tags: China, wheat, USA