Canada sent the largest amount of wheat in China in 14 years, in contrast to the sudden cessation of the trade Canalou amid the diplomatic dispute between the countries.
China bought 1.5 million tons of wheat from Canada during the period from August 2018 to April 2019, almost twice more than the previous year, and is the highest since 2004, according to the Canadian grain Commission.
Brisk purchases by China of canadian wheat proves that agribusiness is affected by supply and demand, and not only politics.
Canada and the United States are the two largest suppliers of wheat with high protein that provides strength to the gluten necessary for good baking. Australia's wheat crop with high content of suffered from drought.
If Chinese buyers of wheat necessary protein, they may need to choose Canada, not the United States, said one of the canadian exporters of wheat.
Last year China imposed a 25 percent import duty on wheat of the United States in the trade war with the United States, effectively stopping the sale and delivery on the fourth-largest export market for high-protein hard red spring wheat U.S. production.
This year China suspended imports of canadian canola, referring to pests in some parties, shortly after canadian police arrested the head of a Chinese telecommunications company Huawei Technologies at the request of the United States.
"China is not buying wheat from the USA because of this quarrel, - said Terry Reilly, senior analyst commodities at Futures International. - I do not see that China has returned as a major importer of American wheat, if the trade dispute is not fully resolved".
According to the trade-US census Bureau, in April this year, 42,000 tons of exports of U.S. wheat to China were the lowest for the past 11 years. According to the Ministry of agriculture of the USA, in may China has not purchased wheat in the United States.
In may and June canadian sales in China was slow, but then it began to rise, and luckily, the farmers need the money after years of "depressed" income.
"Any additional sale is crucial this year. This gives us some optimism," said Jim Wickett of Rostana, Saskachewan, farmer and Chairman of the Association of Western canadian wheat producers.
Chinese buying make China the second largest foreign wheat market for Canada this year after Indonesia, with 11 percent of total exports.
Translated by service "Yandex.Translation"