February 13, 2007

 

China's wheat prices stable ahead of Chinese New Year

 

 

Wheat prices in China were largely unchanged in the week to Monday (Feb 12) ahead of the Lunar New Year holiday, due to sluggish demand and a lack of supply.

 

Prices of average-quality wheat in Henan province were at RMB1,480-1,520 a tonne, unchanged from a week earlier.

 

Prices of average-quality wheat in Hebei province were at RMB1,560-1,580/tonne, also unchanged from the level in the previous week.

 

In Shandong, another major wheat-growing province, they were at RMB1,560-1,580 a tonne, flat from a week earlier.

 

"The processing plants have stopped purchasing for holiday reserves, and farmers are preparing for the holiday," said a Beijing-based analyst.

 

He expects wheat prices to remain stable after the holiday. Government offices, businesses and financial markets will be closed Feb 19-23.

 

Farmers usually have longer break, which started earlier and can last as long as a month.

 

China has been holding auctions of wheat bought under the minimum purchase price programme since late last year to help stabilise prices.

 

Last week, China sold 546,244 tonnes of wheat in six provinces during its weekly auction, or 55 percent of the 991,900 tonnes that it planned to sell.