March 29, 2004

China's Henan Province To Sell 1.5 Million MT Wheat

Henan, the top wheat producing region in China, plans to sell an additional 1.5 million metric tons of old wheat from state reserves this week to ease the current supply tightness in the market and keep prices from rising further, traders said Monday.
 
An auction will be held in Zhengzhou, the capital of Henan Tuesday, local traders said.
 
The floor price for Tuesday's auction will likely be set around RMB1,570- 1,580 ($1=RMB.277) a metric ton, but actual sale prices are expected to be close to RMB1,700/ton, traders said.
 
The ex-warehouse prices of normal quality wheat in Henan Shandong are quoted around RMB1,660-RMB1,700/ton Monday, about CNY20/ton higher than prices last week.
 
Last week, the Henan government sold more than 800,000 tons of old wheat from state reserves.