According to data from the Australian government, Australian wheat exports reached 2.5 million tons in December 2020, an increase of 173%year-on-year.
In 2020, Australian wheat production will recover from the three consecutive years of drought-reduced production, reaching the second highest record of 31.2 million tons. Coupled with the tight export supply of other major exporting countries, it will help Australia in 2020/21 ( From October to September of the following year) wheat exports increased significantly.
In December, China was the number one destination for Australian wheat, accounting for 32%of the total exports of the month. China imported slightly more than 800,000 tons of Australian wheat, which is also the highest monthly export record for Australia to any country in history , Despite the tense trade relations between China and Australia.
In the past few months, China has been importing large quantities of grain from overseas markets to meet domestic demand. Industry insiders said that the attractive price of Australian new wheat is the main reason for encouraging China to import Australian wheat.
Industry sources added that most of the Australian wheat shipped to China in December may have been signed for sale as early as September, when the price of Australian new wheat was competitive, and the trade friction between the two countries had not yet escalated significantly.
In December, Vietnam was the second largest importer of Australian wheat, with a quantity of 327,000 tons. Data show that Indonesia and the Philippines are the third and fourth largest export destinations, with quantities of 260,000 tons and 206,000 tons respectively. Australia’s wheat exports to these three Southeast Asian countries increased by 178%year-on-year in December because Australian wheat is the most competitive in the region. Although Russian and Argentine wheat have been favored by Southeast Asian buyers in the past two years, the dry weather has pushed up prices and the government’s export restrictions have caused supply shortages.
As far as the average transaction price is concerned, the purchase price of the Philippines is US$230 per ton, second only to the purchase price of Saudi Arabia. This shows that most of the wheat exported by Australia to the Philippines is of feed grade. The Philippines generally purchases the cheapest feed wheat to produce feed, and purchases milling wheat from the United States to produce flour.
The average price of wheat sold in Australia to China in December was US$242/ton, and the price of wheat sold to Indonesia and Vietnam was US$254 and US$253/ton respectively, including feed wheat and flour wheat.
Since mid-September, the price of wheat in Australia has been rising. Among them, the price of high-quality white wheat in Australia has risen by US$40.50 to US$287 per ton, the FOB price in Kwinana.