Australia Adds to Warning on Possible Wheat Export Ban to China

Wheat plants in a combine harvester during a harvest at a farm near Gunnedah, New South Wales, Australia, on Tuesday, Nov. 10, 2020. Media reports suggesting China could soon target imports of Australian wheat, after already turning its attention to barley, wine, cotton and beef, have rattled the market. , Bloomberg

Sybilla Gross, Bloomberg News

Dec 6, 2020

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(Bloomberg) -- 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.

READ: China Trade Dispute Sends Wheat Futures Reeling in Australia

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.

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