More US wheat seen moving to China; total inspections up on week

New Delhi — More US wheat was seen moving to China in the week ended Nov. 19, latest data from the US Department of Agriculture showed, indicating contracted deals were translating to actual shipments, with total US wheat exports to China inching closer to a five-year high.

US inspections for wheat bound for China hit 62,999 mt in the week to Nov. 19, taking total US wheat exports to China to 1.29 million mt so far in the 2020-2021 marketing season that started June 1, according to inspection data released Nov. 23.

The volume just remains below the total export of 1.6 million mt made to China in 2016-2017, US Census Bureau trade data showed.

China's total commitments for US wheat, which include contracted volumes and total exports, have already hit a seven-year high after reaching 1.7 million mt in the week to Nov. 12, according to USDA data.

China's total commitments take it past Japan, which is traditionally a large buyer of US wheat besides Mexico and the Philippines.

Along with other US agricultural products, Chinese buyers have continued to show steady interest in US wheat this season, a move seen as part of meeting both the US Phase 1 Trade deal commitments and growing domestic requirements.

US WHEAT INSPECTIONS

Total US wheat inspections for global destinations in the week to Nov. 19 were up 7% from the previous week to 358,077 mt, led by shipments to Mexico, China and Guatemala.

However, the pace of US wheat exports so far in 2020-2021 has been slowing down slightly from last year's levels. The slower pace was mostly visible since the week ended Oct. 15, coinciding with China's absence from the inspection lineups during the following weeks, according to USDA data. Chinese buyers only returned to US ports after a gap of three weeks.

As of Nov. 19, total US wheat inspections in 2020-2021 reached 12.4 million mt, 0.3% above the same period last year, according to USDA data.

With the marketing season hitting its 25th week, total exports now account for 46.8% of USDA's export estimates for 2020-2021.

Overall, the USDA estimates the US will export 26.5 million mt of wheat in the 2020-2021 season.

Inspection for export indicates the loading of a sold commodity onto ships that are set to leave US ports during a given week.