Australian wheat exports flow into China

Amid trade tensions between China and Australia, exports of one commodity are still going strong.

Exports ramp-up: GrainGrowers chairman Brett Hosking said there was a strong export program of wheat into China, with exports mostly booked before harvest. PICTURE: ZOE PHILLIPS

AUSTRALIAN wheat exports to China are buoyant, despite previous concerns the country would ban imports of the commodity.

According to international analytics company S&P Global Platts, Australia shipped about 600,000 tonnes of wheat to China last month, making that country the No, 1 destination for wheat in December.

Grain Producers Australia chairman Andrew Weidemann said wheat exports to China were strong, and he understood about two million tonnes of wheat were expected to be exported over the next few months.

“Wheat exports to China are above average this year,” Mr Weidemann said.

“It is a highly volatile situation, but trade to trade is meeting specifications.”

And while there were still concerns over political issues, things were still “fruitful” for Australia’s growers, bulk traders and China, he said.

GrainGrowers chairman Brett Hosking agreed there was a strong export program of wheat into China, with exports mostly booked before harvest.

“Ports here in Australia are stretched to capacity,” Mr Hosking said.

“It has been a big year for the east coast of Australia, and quality has also been extremely good.

“Usually in a big year quality drops, but I have been hearing reports it is looking good so that is a testament to growers.”

Mr Hosking said there was a good spread of grain classification available, from high protein to Australian Standard White wheat varieties.

“There is high standard Australian bulk grain available,” Mr Hosking said.

Along with China, Indonesia continued to be a large market for Australian wheat, Mr Hosking said, and with a big production year growers were also looking further afield than Asia.

“But vast exports will go to Asia-Pacific as there are freight advantages and Australia want to be the providers of clean and healthy food,” Mr Hosking said.

Meanwhile for barley, Mr Hosking said with China’s hefty tariffs on barley taking out that malt market for Australian growers, the Government was working on a positive outcome for it to resume.

“Malt is being sold offshore as feed barley for a reasonable price, but it is disappointing to see high-quality grain go down a cow’s throat,” Mr Hosking said.

“The Government need to work with industry to help highlight premium malt markets so growers get reward for quality.”

MORE: A POTENTIAL CHINA BAN ON AUSTRALIAN WHEAT REMAINS A ‘WORRY’

WHEAT COMPETITIVE IN OTHER MARKETS AMID CHINA BAN RUMOURS