May 21, 2005

China's wheat supply for 2004-05 enough for domestic consumption

China's wheat supply in 2004-2005 increased over the previous period, and the aggregate supply is adequate to satisfy domestic demand, announced the Ministry of Agriculture (MOA) on Monday.

According to the MOA, the volume of wheat supply in the 2005-2006 period is expected to continue rising, but it might still be necessary to draw on stocks to satisfy the aggregate domestic consumption demand. However, domestic consumption is expected to decrease.

In the first three months of this year, China imported 1.9 million tonnes of wheat, more than 6 times over the same period of last year. Exports totalled 18,900 tons, amounting to a 93.1 percent decrease.

Price-wise, April sale prices in the major wheat producing areas fell to RMB73.2 (US$8.8) per 50 kg, 1.0 percent lower than in March. In Zhengzhou, in central China's Henan province, the wholesale price of normal wheat was RMB77.5 (US$9.4) per 50 kg in April, down 1.1 percent from March, and down 1.3 percent compared with last April; the wholesale price of high-quality wheat was RMB80.5 (US$9.7) per 50 kg, down 0.2 percent from March, and 3.4 percent compared with last April.