Bloomberg: Wheat king Russia is missing out on China’s buying spree
Despite ramping up wheat purchases from around the globe, China remains one of the few main markets that Russia is struggling to crack, Bloomberg reports.
According to the source, China’s imports are expected to climb to a seven-year high this season -- almost doubling in just two years -- as the country tries to secure food supplies amid a recovery in the domestic economy following coronavirus lockdowns. While that’s good news for shippers like France and Australia, Russia can only supply small amounts, mainly because China bans most Russian wheat over fungus concerns.
Still, the two nations have forged closer agricultural ties in recent years and Russia’s agricultural agency said it’s pushing China to allow imports from the country’s major growing areas, rather than just some eastern regions. That would potentially allow Russia to grab a bigger share of the global wheat market and intensify competition with rival shippers.
“If Russia comes there in earnest, competition will toughen,” said Andrey Sizov Jr., managing director at consultant SovEcon in Moscow. “Supplies will increase if the list of authorized regions is expanded.”