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The signiϐicance of China in grain
and oilseed global markets
c
hina continues to be an important player in the grain
markets, particularly when referring to demand. The
country is the second largest cereal (grain) importer, ac-
counting for 6% of the global traded cereals in 2014.
Moreover, China is also a leading importer of oilseeds, ac-
counting for 42% of the global traded oilseeds in 2014.
Hence, the current economic slowdown has caused major con-
cerns in the grain markets, which has led to increased volatility in
prices. In this article, we will briefly explore the Chinese grain and
oilseed market structure, in a view to present its significance in the
global grain and oilseed markets (which also influences the South
African grain and oilseed markets).
Chinese cereal (grain) import perspective
China has been the net importer of cereal since 2008, with im-
ports increasing significantly between 2009 and 2014, from
R7,3 billion to R67 billion. Although various factors contributed
to this increase, the most significant has been an increased con-
Oktober 2015
56
WANDILE SIHLOBO,
economist: Grain SA and
TINASHE KAPUYA
,
head: Trade and Investment, Agbiz
GRAIN MARKET
overview
– 15 September 2015
ON FARM LEVEL
Graph 1: Chinese cereal imports and exports in rand value.
Source: International Trade Centre (2015)
* Cereal = Maize (HS Code: 1005), Wheat (HS Code: 1001), Rice (HS Code: 1006), Rye (HS Code: 1002), Barley (HS Code: 1003), Sorghum (HS Code: 1007),
Oats (HS Code: 1004) and Buckwheat, millet and canary seed (HS Code: 1008)