Chinese wheat importers cancelled or postponed around one million metric tons of Australian wheat cargoes as increasing world stockpiles pushed prices down, Reuters reported on Thursday.
This follows the US government’s report of China cancelling over 500,000 metric tons of US wheat exports last week.
The cancellations are likely due to a steep decline in prices and an oversupply in China’s domestic market. Trading companies have vacated shipping slots across several Australian ports previously booked for cargoes to China.
Meanwhile, benchmark Chicago wheat futures dropped by more than 14 per cent in 2024, and Russia, the top exporter, is flooding the global market with cheap wheat.
Some Chinese importers who cancelled or postponed purchases have agreed to pay penalties to Australian suppliers. A Middle Eastern miller was able to buy a cargo of Australian wheat for an early April shipment, made possible by China’s decision to postpone shipments.
