Agricultural News
U.S. Wheat Associates Statement on Major Chinese Wheat Purchase
Fri, 20 Mar 2020 12:34:46 CDT
U.S. Wheat Associates (USW) President Vince Peterson issued the following statement about news of Chinese wheat import purchases.
"The USDA report today that Chinese buyers have purchased 340,000 metric tons, or about 12.5 million bushels, of U.S. hard red winter (HRW) wheat for delivery in the 2020/21 marketing year is very good news for U.S. wheat farmers.
This is a significant purchase volume and the largest since China implemented retaliatory tariffs on U.S. wheat in March 2018.
"This purchase falls under China's 9.64 million metric ton tariff rate quota (TRQ). China has agreed to work toward filling its TRQ for wheat imports.
As USW has noted, if the changes are in fact implemented, and Chinese millers can respond to market signals, most of the TRQ should be used. U.S. wheat farmers are in a good position to help fill the TRQ given current export prices, relatively low freight rates and the ready supply of the wheat classes China needs.
"USW appreciates the efforts of both the U.S. and Chinese governments to reach the Phase One trade agreement that has helped re-open the door to U.S. wheat imports by China.
We believe that China's flour millers and growing baking industry want the opportunity to purchase high-quality U.S. wheat classes again and we hope this is only the beginning of a new, more productive trade relationship."
U.S. Wheat Associates' (USW) mission is to develop, maintain, and expand international markets to enhance wheat's profitability for U.S. wheat producers and its value for their customers in more than 100 countries.
Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA's Foreign Agricultural Service.For more information, visit www.uswheat.org.
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