China shows first interest in US wheat purchases since trade talks

Chinese state-owned grain trader COFCO has made its first inquiry about potential US wheat purchases since the September talks between the leaders of the United States and China. According to Bloomberg, the company is considering imports of US soft red winter wheat (SRW) for shipment in early 2027.

China’s renewed interest in US wheat comes amid trade agreements between Washington and Beijing. Following the meeting between the two countries’ presidents in September, both sides announced plans to reduce tariffs on several agricultural commodities, including wheat, corn and sorghum. The easing of trade restrictions is expected to form part of a broader agreement to reduce tariffs on imports worth approximately $30 bln on each side.

China has also committed to purchasing at least $17 bln worth of US agricultural products annually through 2028. Separately, the agreement provides for purchases of no less than 25 mln tons of US soybeans each year during this period. Chinese state-owned companies have already been gradually increasing soybean purchases, although trade in other grains has been recovering more slowly. According to Bloomberg, the US has not yet recorded any wheat or corn sales to China since the beginning of the current marketing year.

Meanwhile, China’s domestic wheat supplies remain substantial following a strong harvest. According to USDA forecasts, wheat production in MY 2026/27 is expected to exceed 140 mln tons, while imports are projected at 6 mln tons. Imports have picked up, but are well below previous levels and overall demand has remained subdued.

A potential resumption of US wheat purchases could mark the first tangible result of easing trade restrictions in the grain sector. However, further buying activity by Chinese importers will depend on the competitiveness of US wheat, delivery terms and the actual reduction in tariffs.

Tags: China, wheat, USA