Australia adds to warning on possible wheat export ban to China

Supply Lines is a daily newsletter that tracks Covid-19’s impact on trade. Sign up here, and subscribe to our Covid-19 podcast for the latest news and analysis on the pandemic. China may impose trade restrictions on Australian wheat exports similar to the curbs on barley and other commodities, Abares said, adding to expectations that the crop may be next to get ensnared in a worsening trade fight.

While China historically hasn’t been a key market for Australian wheat — accounting for about 10% share last year — high domestic grain prices could push China’s 2020-21 imports to the highest in 25 years, the Australian government forecaster said in its latest quarterly report.

This demand will likely be met by cargoes from the U.S. and the Black Sea region, though smaller exportable surpluses from these major shippers will give Australia an opportunity to meet demand in other markets, Abares added.

BloombergQuint

Tags: Australia, China, possible wheat export ban