Australia's wheat exports to China hit an all-time high in December 2020

Australian wheat exports reached 2.5 million tonnes in December 2020, up 173 per cent year-on-year, according to government figures.
Australia's wheat production will recover from three consecutive years of drought-related production cuts to a record high of 31.2 million tonnes in 2020, and tight export supplies from other major exporters will help Australia's wheat exports grow significantly in 2020/21 (October to September).
China was Australia's top wheat destination in December, accounting for 32 per cent of total exports for the month, while China imported just over 800,000 tonnes of Australian wheat, the highest monthly export record for any country in history, despite tight trade relations between the two countries.
china has been importing grain from overseas markets in the past few months to meet domestic demand.
industry sources said the attractive price of New Wheat in Australia was the main reason for encouraging Chinese imports of Australian wheat.
industry sources added that most of the Australian wheat shipped to China in December may have been signed up for sale as early as September, when the price of new Australian wheat was competitive and trade frictions between the two countries had not escalated significantly.
the second-largest importer of Australian wheat in December, at 327,000 tonnes.
philippines are the third and fourth largest export destinations, with 260,000 tonnes and 206,000 tonnes respectively, according to the government's data.
's wheat exports to the three Southeast Asian countries rose 178 per cent year-on-year in December, as the country is the most competitive in the region.
wheat in Russia and Argentina has been favored by buyers in Southeast Asia over the past two years, the drought has pushed up prices and strained supplies due to government export restrictions.
in terms of average transaction prices, the Philippines' purchase price is $230 a tonne, second only to Saudi Arabia's, suggesting that most of Australia's wheat exports to the Philippines are feed grades.
the Philippines generally buys the cheapest feed wheat, produces feed, and buys flour-making wheat from the United States for flour production.
average australian wheat sold to China in December was $242 a tonne, and wheat sold to Indonesia and Vietnam was $254 and $253 a tonne, respectively, including feed and flour wheat.
wheat prices have been rising since mid-September, with Australian premium white wheat rising $40.50 to $287 a tonne and the Kwinana region FOB price.