China has set a maximum volume of 37 million metric tons per year for wheat purchases at the minimum price in 2025 and 2026, the state planner said in a notice issued on Tuesday (24), similar to the amount set last year.

China buys wheat from farmers at the minimum price when the market price falls below that level, in order to support food production.

The minimum purchase price for third-grade wheat produced in 2025 and 2026 was set at 119 yuan (16.92 dollars) per 50 kilograms, equivalent to 2,380 yuan per metric ton, the National Development and Reform Commission said in a separate notice.

For 2024, the minimum price was 118 yuan per 50 kilograms.

China's wheat imports have increased in recent years, but the country's buying spree is likely to slow down in the second half of 2024, as higher domestic production and declining flour consumption reduce import demand in the world's largest consumer of the grain.

Source: Forbes