SIMIC

China is taking close to two million tonnes out of the five million tonnes of wheat that Australian farmers have sold so far from the 2021/22 crop.

The buying comes as Australia expects a second consecutive bumper harvest, while Northern Hemisphere producers have been hit by adverse weather and drought.

China has imposed anti-dumping duties on Australian wine and barley, slashing purchases of Australian coal and beef during the dispute.

"It is all about availability of good quality wheat supplies at the right price when it comes to food security for China, or any other country," said National Australia Bank in Melbourne agri-business economist Phin Ziebell.

"Of course, there is posturing over the trade dispute, but food supplies are key." said Mr Ziebell.