China reserves two shipments of US wheat. Traders believe it is a political move

China has booked two shipments of U.S. wheat after a meeting between the two countries’ leaders last week, traders said on Thursday. The first such purchases since October last year, signaling an easing of trade tensions between Washington and Beijing, Reuters reported.

The purchases, totaling about 120,000 tonnes for delivery in December, include one shipment of U.S. soft wheat and one shipment of spring wheat, the sources said.

“This is more of a demonstration of China’s willingness to buy U.S. grain as U.S. wheat is not currently the cheapest on the market,” said a Singapore-based trader familiar with the deals.

China imported 1.9 million tonnes of U.S. wheat in 2024, accounting for 17% of its total imports.

However, China has reduced its overall wheat imports this year after a bumper harvest. Wheat imports in January-September fell by 72% compared to the same period last year.

In another positive sign on the trade front, a shipment of sorghum from the United States was sent to China after the Trump-Xi meeting, Mark Wilson, chairman of the U.S. Grains and Bioproducts Council, told Reuters.

The United States has shipped 5.7 million tons of sorghum to China in 2024, accounting for 66% of the country’s imports of the grain.

Tags: China, wheat, USA