According to a report from Reuters on Thursday, Chinese wheat importers have cancelled or postponed approximately one million metric tons of Australian wheat cargoes as global stockpiles increase, leading to a decline in prices.
This development follows a recent report from the US government indicating that China cancelled over 500,000 metric tons of US wheat exports last week.
The cancellations are attributed to a significant drop in prices and an oversupply in China’s domestic wheat market. As a result, trading companies have relinquished shipping slots across various Australian ports that were previously reserved for shipments to China.
Meanwhile, benchmark Chicago wheat futures have plummeted by more than 14 percent in 2024, and Russia, the leading exporter, is saturating the global market with competitively priced wheat.
In response to the cancellations or delays, some Chinese importers have agreed to pay penalties to Australian suppliers. Notably, a Middle Eastern miller seized the opportunity to purchase a cargo of Australian wheat for an early April shipment, facilitated by China’s decision to postpone its shipments.
