WASHINGTON, DC, US — Private exporters have canceled the sale of 504,000 tonnes of US wheat for delivery to China, the largest in US Department of Agriculture (USDA) data that goes back to 1999.
The three cancellations occurred on March 7, 8 and 11, according to the USDA. China had made several US wheat purchases in December 2023.
China’s cancellations of soft red winter (SRW) wheat are due to falling global wheat prices, Tanner Ehmke, grains and oilseeds economist for CoBank, told World Grain.
“FOB prices for Russian and Ukrainian wheat have dropped below $200 per tonne, while US SRW prices are over $220 per tonne,” he said. “Russia’s exports are further aided by their weak currency.”
In the last year, the Russian ruble versus the US dollar is down 15%.
“The market is also pricing in expectations for another big Russian wheat crop with soil moisture in the region being favorable heading into spring,” Ehmke said.
Last week, China’s finance ministry said it will spend 140.63 billion yuan ($19.6 billion) on stockpiling grains, edible oils and other materials, an increase of 8.01% from last year.