May 16, 2008

China wheat prices unlikely to surge in short term

China's wheat prices are not expected to gain big ups and downs in the short term, an analysis of the Shanghai Grain Net said.

The report indicated that China's wheat price is still fluctuating within a limited zone.

Based on a survey on 18 wheat production provinces by the Ministry of Agriculture, China will have a bumper harvest of wheat this year due to favourable weather in May - June.

Meanwhile, state-owned grain enterprises boast more than 15 million tonnes of sales, indicating a surplus supply pattern in wheat market.