Grains<\/u> –
\nWhile reviewing yesterday\u2019s export inspections data, one thing stood out to me.\u00a0 Over the past several weeks\/months, we\u2019ve continued to see ongoing and consistent wheat shipments to China.\u00a0 The chart below shows that MYTD export shipments are the strongest we\u2019ve seen in several years.\u00a0 I find this interesting considering China remains THE spot in the world where wheat stocks are expected to increase.<\/p>\n
China updated monthly trade data overnight.\u00a0 Farther below I show a chart with monthly Chinese imports going back a few years.\u00a0 The recent import level is the strongest in several years.\u00a0 Why is China, the spot with the world\u2019s largest wheat reserves, increasing its wheat imports?\u00a0 Admittedly these quantities aren\u2019t enormous in the grand scheme of things, but I still find this highly interesting.\u00a0 The usual storyline is that Chinese wheat supplies are of poor quality and thus they need to import better quality supplies for blending.\u00a0 That seems reasonable and fair to me, but if their reserves are this poor that they need additional global supplies, why is the market so relieved about the total world stock level?\u00a0 Wheat supplies outside of China are contracting, and yet China apparently needs those supplies in addition to their massive inventories?<\/p>\n
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