by Niu Shuping and Naveen Thukral
BEIJING/SINGAPORE – Chinese wheat buyers are likely to step up imports of higher quality grains to meet a domestic shortfall even though total overseas purchases are forecast to tumble this year due to bumper production at home, analysts and traders said.
China, the world's biggest wheat producer and consumer, has seen output climb to record levels in recent years, but it faces a shortage of the high-protein wheat it needs to meet growing appetite for noodles, bread and other baked products as incomes rise.
“Hard red spring wheat is in extremely short supply here in the domestic market because China's own production of high-quality wheat was not satisfactory despite higher output,” said an analyst with an official think-tank who declined to be identified.
More demand for high-protein wheat could bolster prices for spring wheat traded on the Minneapolis Grains Exchange, which have risen 2.2 percent this week, as well as supporting hard red winter wheat futures in Kansas, up 1.5 percent.
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Source: Reuters
Posted by Jami Howell
