According to forecasts, China in 2018 expects a decrease in gross wheat harvest by about 20% compared to the level of the previous year, which will be caused by unfavorable weather conditions in the main cereal-producing regions, reports Reuters.
The National Council of China on Grain and Oilseeds has lowered the estimate of wheat production in the country by 3 million tons (about 2.5%) to 126.73 million tons. However, market participants expect that this decline may be more significant - about 15-20%.
The reduction in domestic production may lead to an increase in the volume of wheat imports to the country in 2018/19 MY and to put pressure on world prices for cereals, which since April have already fallen by about 15%. It should be noted that the trade conflict between the US and the PRC may impede shipments of American grain to the Chinese market, thereby contributing to an increase in wheat imports from Canada, Russia and Kazakhstan.
Source: soyanews.info.
