Weak Chinese demand leaves Australia with too much wheat | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
May 28, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, MAY 28, 2025
Weak Chinese demand leaves Australia with too much wheat

World+Biz

Reuters
27 May, 2025, 01:20 pm
Last modified: 27 May, 2025, 01:24 pm

Related News

  • Residents pick up the pieces one day after deadly China chemical blast
  • Mango exports to China begins tomorrow
  • Australia floods recovery could take several months: Albanese
  • China explores cross-border trade cooperation with Bangladesh
  • Australian authorities airdrop supplies to farmers stranded by flood crisis

Weak Chinese demand leaves Australia with too much wheat

A fire sale of stored grain may be necessary to clear space before the new wheat harvest in the last quarter of the year, which would weigh on benchmark Chicago futures already trading near their lowest since 2020 because of abundant global supply

Reuters
27 May, 2025, 01:20 pm
Last modified: 27 May, 2025, 01:24 pm
Harvested wheat is loaded onto a truck in preparation for transport near Moree, Australia, October 27, 2020. Picture taken October 27, 2020. Photo: REUTERS/Jonathan Barrett/File Photo
Harvested wheat is loaded onto a truck in preparation for transport near Moree, Australia, October 27, 2020. Picture taken October 27, 2020. Photo: REUTERS/Jonathan Barrett/File Photo

Highlights:

  • Wheat exports to China have slumped
  • Australia's end-of-season wheat stocks could be 8 million tons
  • Sell-off may be needed to free storage space

Australian wheat inventories will likely be much higher than last year at the end of the season, pressuring prices, because of a drop in Chinese imports and competition from ample supplies out of rival exporter Russia, analysts and traders said.

A fire sale of stored grain may be necessary to clear space before the new wheat harvest in the last quarter of the year, which would weigh on benchmark Chicago futures already trading near their lowest since 2020 because of abundant global supply.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Australia sent just 546,000 metric tons of wheat to China during the October to March period, the first six months of its marketing season, down from 2.9 million tons in the first six months of the 2023/24 season and 4.4 million tons in the same period in 2022/23, Australian customs data show.

Shipments from Russia, the world's largest wheat exporter, have also remained strong despite the second quarter typically being its pre-harvest lean export season.
The next Northern Hemisphere wheat harvest, including Russia's, will ramp up in coming weeks, pouring cheap grain onto the market and limiting Australia's export prospects, said Vitor Pistoia, an analyst at Rabobank in Sydney.

"If the current pace of Australian exports continues, we're going to have 5-6 million tons of carryover from last season's crop," he said.

"We are building up a massive problem. It's not like the global market is short of supply," he said, adding that it may lead to mass selling of grain that could push prices towards A$300 ($194) a ton from between A$325 to A$350 now.

Total carryover including grain from past seasons could be as high as 8 million tons, said a source at an international grain trader based in Australia.

"If the new season crops look good, it can become a storage capacity issue. It forces people to sell cheaper into the export market to clear space," the source said.

Australia's end-of-season wheat stocks have averaged 3.3 million tons in the last five years, according to data from the US Department of Agriculture.

"Four million tons is comfortable," the source said. "More than 6 is getting difficult."

Analysts expect Australia to produce 28 million-34 million tons of wheat this year. That would be down from last year's 34.1 million tons but well above the ten-year average of 27.6 million tons, according to government data.

Chinese buyers booked four or five 55,000-ton shipments of Australian wheat around the start of May, but these are the only new Chinese purchases this calendar year and have not been followed up with more.

China, which was experiencing hot and dry in key growing regions, is likely to see rainfall in those areas through next Tuesday which could further reduce demand for imported wheat.

Russia, meanwhile, has continued to ship grain at competitive prices even during its off season, said a grain trader in Singapore.

"We were hoping more Australian wheat cargoes would reach destinations in the Middle East and Africa," they said. "There were expectations that Russia would have less to export."

Top News / Global Economy

australia / wheat export / China

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Leaders and activists of BNP gather at Nayapaltan ahead of the rally of three BNP affiliated organisations on Wednesday, 28 May 2025. Photo: Rajib Dhar/TBS
    Thousands gather as BNP's rally in Nayapaltan underway
  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
    Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • Representational Image. Freepik
    DSEX drops 62 points, extends losing streak to six days

MOST VIEWED

  • Selim RF Hussain. Sketch: TBS
    BRAC Bank MD Selim RF Hussain resigns
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Depositors need not worry as govt will take over banks before merger: BB governor
  • Graphics: TBS
    Suspicious banking activities surge by 56% since July: Cenbank
  • Photo: Collected
    DU student assaulted for protesting eve-teasing at Chadni Chowk
  • Illustration: TBS
    Bangladesh sees highest-ever per capita income of $2,820 in FY25, BBS provisional data shows
  • Officials protest inside the Secretariat on Tuesday, 27 May 2025, over a government ordinance amending the Public Service Act, 2018. Photo: Rajib Dhar
    Protest at Secretariat suspended as govt assures decision on ordinance tomorrow

Related News

  • Residents pick up the pieces one day after deadly China chemical blast
  • Mango exports to China begins tomorrow
  • Australia floods recovery could take several months: Albanese
  • China explores cross-border trade cooperation with Bangladesh
  • Australian authorities airdrop supplies to farmers stranded by flood crisis

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

1d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

2d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

2d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

2d | Wheels

More Videos from TBS

How Was Interpol’s Most Wanted Subrata Bain Arrested?

How Was Interpol’s Most Wanted Subrata Bain Arrested?

28m | TBS Stories
Google Pay likely coming to Bangladesh soon

Google Pay likely coming to Bangladesh soon

53m | TBS Stories
UCB aims to grow deposits by Tk12,000 crore this year

UCB aims to grow deposits by Tk12,000 crore this year

1h | TBS Programs
What did Jamaat leader ATM Azhar say after being released from prison?

What did Jamaat leader ATM Azhar say after being released from prison?

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net