China resumes feed wheat exports despite low stocks

China has resumed limited exports of feed wheat despite low stocks while higher domestic prices have fuelled hopes for more purchases from the United States, traders said on Thursday.
They said China was selling small amounts of feed wheat to South Korea and the Philippines while exports of milling wheat had ground to a halt due to declining stocks.
"They don't need to export but they are exporting," said a senior trader at an international house. "Chinese supply is tight, that's for sure I think chances (for more imports) are increasing."
The traders said domestic wheat prices picked up to about 1,500 yuan ($181) per tonne after retreating to 1,400 yuan ($169) or below during the first half of this month.
The prices stood at about 1,100 yuan ($133) a year ago.
Though domestic prices were lower than international prices, the traders expected more imports after the next harvest by COFCO, the state-owned trader controlling 90 percent of 2004 wheat import quotas of 9.64 million tonnes.
The trade is keeping an eye on when COFCO decides to ship about 4.5 million tonnes it bought from Australia, Canada and the United States over the past few months.
"If it starts arriving more than half a million tonnes each month, it's the real beginning of the import programme," said a Beijing-based analyst.
In the export market, the traders said China was offering low-quality spring wheat not suitable for milling purposes.
"China was expected to continue to implement some of the export contracts signed in 2003," said a report by the China National Grain and Edible Oil Information Center seen by Reuters on Thursday.
"Wheat exports in 2004 would not exceed one million tonnes," said the report, adding Chinese imports would possibly exceed four million tonnes this year.
No prices were available for feed wheat exports.
But traders in Seoul said on Tuesday that Major Feedmill Group (MFG) and the Korea Feed Association's regional members in Pusan (Pusan KFA) jointly bought 20,000 tonnes of optional origin feed wheat at $189.90 per tonne C&F for arrival late in April.
Some expected this cargo to be sourced from China.
Data compiled by Xinhua Guoxin Information Service Ltd also showed 22,000 tonnes of wheat was loaded for the Philippines.
No COFCO official was immediately available for comment.