China's wheat production is expected to reach 125.3 million tons

China's wheat production is expected to reach 125.3 million tons A report released by the International Grains Council (IGC) shows that China's wheat production in 2014/15 is expected to be 125.3 million tons, higher than 121.9 million tons the previous year. Wheat imports are expected to be 2 million tons, lower than the earlier forecast of 2.7 million tons, and compared with 6.7 million tons the previous year. Total wheat supply is expected to be 186 million tons, compared with the earlier forecast of 186.7 million tons and 182.4 million tons the previous year. Wheat usage is expected to be 122.9 million tons, compared with 123.3 million tons the previous year. Wheat exports are expected to be 500,000 tons, compared with 300,000 tons the previous year. Ending wheat stocks are expected to be 62.6 million tons, lower than the earlier forecast of 63.3 million tons, and compared with 58.7 million tons the previous year.

Consumer demand in the oils and fats market shows little improvement As of December 2, domestic port palm oil stocks stood at 596,000 tons, and commercial soybean oil stocks at 1.21 million tons. The state reserves of rapeseed oil are sufficient, and any reserve release would also put considerable pressure on the market. The market estimates that this year's soybean import growth will be 10.62% higher than last year. With the large increase in soybean arrivals at ports in the later period, the pressure on domestic oils and fats stocks will continue to grow. At the same time, downstream consumption growth in oils and fats is relatively stable; genetically modified oil is not favored by the market, apparent consumption of soybean oil is declining, palm oil remains stable, and minor oils such as sunflower seed oil, peanut oil and tea seed oil partially replace consumption of the three major oils and fats. With oils and oilseeds in oversupply and consumption showing little improvement, a major rebound in oils and fats is unlikely.