Global Wheat Import Decline Forecast Amid Economic Slowdown

Global wheat imports are expected to decrease as economic growth slows, local cereal outputs rise, and the U.S. dollar strengthens. Countries like China, Indonesia, and Egypt are reducing imports, impacting global markets and wheat prices despite declining global inventories.

Global wheat imports are projected to decline this year due to slowed economic growth, a stronger U.S. dollar, and increased local cereal outputs. These factors are putting downward pressure on grain prices despite worldwide inventories reaching their lowest in nine years.

Reduced buying from major importers is likely to offset weather concerns negatively impacting production in key regions like the Black Sea, India, and the U.S. Particularly, China's reduced demand will affect Australian farmers, who have been dependent on Chinese demand for their wheat. In the first half of 2025, China's wheat imports are expected to drop below half of the previous year's volume.

According to analysts and traders, Indonesia and Egypt will also witness slower wheat demand growth. Tighter global stockpiles and volatile geopolitical environments are driving countries to boost domestic production, reducing reliance on global supply chains. Economic challenges in major importers are further exacerbated by weaker local currencies, increasing costs despite low international prices.

(With inputs from agencies.)