China reduces purchases of American wheat due to trade war

China has significantly reduced its wheat imports from the United States, a notable exception to the stable wheat markets despite the difficult trade negotiations. China, a “swing market,” typically buys U.S. wheat, particularly hard red winter wheat, when it sees a good opportunity, said Steve Mercer, senior vice president of communications at US Wheat Associates. But since August last year, purchases have stopped as China has found cheaper alternatives from other suppliers such as Australia and Russia.

China’s overall wheat imports have fallen sharply this year, likely as it seeks to reduce its reliance on foreign supplies amid the trade war with the United States. Mercer said tariffs are spurring talks between countries that could help avoid major disruptions to trade. U.S. farmers are looking to work with partners to address potential problems caused by tariff restrictions and remain optimistic about future talks.

Tags: wheat, USA, China