A Chinese wheat-purchasing delegation to the US has signed contracts with US grain suppliers to buy 1 million tons of wheat, and more contracts are likely when the delegation heads west to Chicago and Portland.

According to a China Central Television report, the delegation, on their third day to the US, inked the contracts in Washington. In the coming four days, they will go further west to Chicago and Portland. No details about the delivery time and value of these contracts are available.

China's main wheat-buying agency wants to contract to buy more US wheat and if it gets the prices its looking for, officials visiting the US now will do so, according to the group's chairman.

Zhou Mingchen, chairman of the board of the China National Cereals Oils and Foodstuff Import & Export Corp., known as Cofco, said: "If U.S. wheat is competitive, we will try to buy more." Zhou, accompanied by several other Cofco officials, met with USDA representatives in Washington on Tuesday. He said he is particularly interested in US wheat from the Pacific Northwest.

The 11-member delegation's two main goals for the current US trip are to conclude shipping arrangements for wheat already contracted as well as look into possible new purchases. Zhou stressed that China will honor the contracts it has already made to buy US wheat.

Zhou said the team hopes to finalize contracts for the purchase of more than two million metric tons during the trip. But he said China will not and cannot depend on other countries to feed its people.

"China attaches great importance to agricultural development and increasing the income of farmers. It is inconceivable that a country of 1.3 billion people will rely on others to feed them," he said. "If China relies on itself, it will be a great contribution to the global economy and mankind. If China, with its 1.3 billion people has to rely on imports to feed its people, it will be a very great problem to the world.

"Don't misunderstand that what I said means China will close down the door," Zhou said.

When asked if China might seek to alter some of the contracts, as some market talk has suggested, he said: "That will never happen. We will strictly abide by our signed contracts."

China has so far contracted to buy 1.085 million metric tons of US wheat for delivery in 2003-04 and 910,000 tons in 2004-05, according to USDA data.

(China Daily February 20, 2004)