April 6, 2004

China's Henan Province To Sell 1 Million MT Wheat

Henan, the top wheat producing province in China, plans to sell about 1 million metric tons of old wheat from state reserves in an auction Thursday, an auction official said Monday.
 
That will be the third auction by Henan so far this year.
 
"We haven't decided on the exact amount for sale this auction, but it could be around 1 million tons," an official at the Henan Grain Trade and Logistic Market said.
 
The wheat on offer will mostly be hard white wheat and produced in 2003 or earlier. Officials have set a floor price of RMB1,480/ton ($1=RMB8.277) for the auction.
 
There was talk earlier that Henan planned to sell 2.5 million tons of old wheat from state reserves Thursday, the final auction to be held before new crops reach the market in June.
 
The official, however, said only around 1 million tons will be on offer Thursday, although more auctions are possible later if there is a supply shortage.
 
"We have more wheat stocks and could hold more auctions before June, if the millers need wheat. But if the wheat markets keep falling in the coming months, we will hold no new auctions," said the official.
 
Normal grade wheat was offered around RMB1,600/ton in central Henan Monday, about RMB40/ton lower from prices last week, following auctions held in mid and late March.