May 13, 2004

China's Henan Province Fails To Sell Much Wheat At Tue Auction

China's Henan province failed to sell most of the wheat it offered Tuesday at the fifth auction this year, traders in Henan said on Wednesday.
 
According to these traders, the total amount of wheat offered for sale Tuesday was around 620,000 metric tons; lower than the amount offered at previous auctions.
 
The local government had set the floor prices at 1,480 yuan ($1=CNY8.28) a ton.
 
But most of the wheat was not sold, traders said, without providing specific details.
 
Auction officials of the provincial government were not immediately available for comment.
 
"People are eyeing the new crop wheat that will be harvested next month," said a grain market analyst from a local brokerage house in Zhengzhou, the capital of Henan province.
 
Since the middle of March, Henan, the top wheat producing region in China, has held a series of auctions to sell about 5 million tons of wheat from government reserves, aiming to increase supply and keep wheat prices in check.