The trader said

Michael Hogan, Peter Hobson and Gus Trompiz

Hamburg/Canberra/Paris (Reuters) - Mexican-style buyers have bought 400,000 to 500,000 metric tons of wheat from Australia and Canada in recent weeks as the heat threatens crops in the heart of China's agriculture.

China is the world's tallest wheat grower and can also import large amounts of grain when domestic supply is insufficient.

Earlier this week, Henan Province grew about one-third of Chinese crops, and as hot and dry weather threatened wheat growing in its fields, issuing a risk warning.

Sources from two major Australian trading companies said Chinese buyers have purchased four to five pieces of 55,000 tons of wheat from Australia for delivery and about 200,000 tons from Canada. Wheat has milling mass.

A businessman said the booking in Australia was the first time the country has made from the country since last year.

COFCO, a state-owned Chinese company that handles most of the country's wheat imports, did not immediately respond to a request for comment.

In recent years, China has been one of the world's largest wheat importers, purchasing about 11 million tons in 2024, worth US$3.5 billion. Australia and Canada are usually their largest suppliers.

However, after China harvested a large amount of wheat and corn harvest last year, goods slowed down sharply and have remained low since then.

China imports less than one million tons of wheat in the seven months ended March 31, with goods delayed or redirected from Australia.

One of the sources said their company has lowered China's forecast for wheat production in 2025 by about 5 million tons, but there is no guarantee that more purchases will be made as China has a large stock of wheat.

"China has been self-sufficient in feed grains this year," said Rod Baker, an analyst at Perth Australian crop forecaster. He added that China's economic growth has also reduced demand for cereals.

Talks about Chinese wheat sales are echoing the agricultural business community around Winnipeg, a capital of Canadian cereal industry, according to Traders. There are few specific details about sales.

Chinese buyers would avoid buying U.S. wheat due to tariffs and a trade war between Washington and Beijing, one trader said. In the past, China has been the main destination for wheat sales in the United States.

The decline in China's imports earlier in the current 2024/25 season led to softer international wheat prices, while Chicago's benchmark futures were still close to a four-year low in July last year.

Traders say China's upcoming harvest risks could bring Chinese importers back into the market as the 2025/26 season approaches.

barley

According to traders, Chinese importers also booked large amounts of barley.

Some say six Panamax bulk carriers sold about 360,000 tons of new French or Ukrainian barley in July or August, while others raised that amount to 1 million tons and shipped this summer.

"In the past year, Chinese wheat and barley import purchases have been very quiet, and this is the first major deal I have seen in several months," said a German businessman.

Buy barley from Ukraine or France from optional sources. A trader said the transaction price was about $250-254 per ton and delivered to China.

(Reporting by Michael Hogan in Hamburg, Peter Hobson of Canberra, Gus Trompiz of Paris, Ed White of Winnipeg