Chinese import delays add pressure on wheat prices

The Euronext wheat milling futures DEC-23 contract price [Mintec Code: WHT2] settled at €219.75mt, down 1.9% week-on-week (w-o-w) on 29th November 2023. Global cash wheat prices continued to trend lower in most major export origins last week. The decline was prompted by rising estimated ending stocks across key EU producers, amplifying overall supply levels in the market, which prompted sellers to adjust prices downwards to attract buying interest. According to market players, seasonal lows in CBOT wheat prices are believed to have been reached, indicating a potential shift in market sentiment. 

Mintec learned that China had delayed imports of French wheat (estimated 2-2.5 million mt), pushing back the timeline from December to March. The decision to delay ownership until March raises questions about China's immediate appetite for wheat imports after the country’s own crop suffered damage from harvest-time rains. Depending on  Chinese buying sentiment related to domestic crop issues, the delay impact global wheat market dynamics and pricing.