China and EU Drive Surge in Global Wheat Imports

The latest Wheat Outlook published by USDA reported a significant increase in wheat imports by China and the European Union, driven by a rise in feed and residual use. Both regions are utilizing more wheat for animal feed due to large imports of feed-quality wheat and competitive pricing compared to domestic feed grains.

China's feed and residual use is projected to reach 32.0 MMT, a 2.0 MMT increase, largely due to substantial imports from Australia. China is expected to be the leading global wheat importer in 2021/22, with imports reaching 12.0 MMT.

Similarly, the EU's feed and residual use is also revised upwards to 47.0 MMT, driven by large shipments from Ukraine. The EU's wheat imports are projected to reach 10.5 MMT, significantly higher than the five-year average.