Posted on August, 28, 2024 at 09:36 pm
CHINA is asking domestic traders to buy less foreign grains as ample supplies and weaker-than-expected demand weigh on prices and threaten its longstanding policy to support local growers.
Beijing this week summoned top importers for meetings and suggested they halt purchases of barley and sorghum, according to people familiar with the matter. The move, ahead of a forecast bumper grains harvest this year, is the latest effort by China to ease domestic oversupply and bolster local prices.
China is the world’s biggest buyer of barley and sorghum, and any sustained curbs on imports would deal a blow to farmers in top exporters such as Australia and the United States. Earlier this year, the authorities asked traders to limit overseas purchases of corn as local supply swelled.
The Asian powerhouse is grappling with an economic slowdown and waning confidence as the rise in living standards shows signs of stalling. The authorities have increased supervision and so-called “window guidance” on imports of commodities in recent years, hoping to reduce the impact on domestic processors and consumers from large fluctuations in global prices.
Barley and sorghum shipments that have already been booked are not affected, and the new measures would likely impact arrivals from November and into the first quarter of next year, said the people, asking not to be identified as they were not authorised to talk about sensitive topics publicly. The majority of currently booked cargoes are for delivery in October and November, they said.
The National Development and Reform Commission, China’s state planner, did not immediately reply to a message seeking comments.
Source: Business Times