Asian Traders Sceptical Of Cargill China Wheat Sale

Grain dealers in Asia on Tuesday could not confirm recent rumours of sales of up to 1.5 million tonnes of wheat to China, possibly partly destined for North Korea, by US trader Cargill.

Nobody can substantiate this, it's highly unlikely and knowing the Chinese, it just doesn't add up," said one wheat trader, echoing the views of others in Hong Kong and in China.

Rumours that Cargill Inc sold between 1.0-1.5 million tonnes of optional origin wheat to China or North Korea snaked through US grains markets on Friday. US traders said the market shrugged off the talk. Cargill, which has permission from the United States government to sell North Korea up to 500,000 tonnes of wheat or rice, has declined to comment on the market talk.

 

What's the point of China buying any wheat when there is enough wheat available in the country? said a Chinese source.