June 9, 2008

China's wheat price to remain stable throughout 2008

China's wheat price will be stable in the second half of 2008, analysts predicted after the country's wheat crop showed steady improvement from last year.

The National Grain and Oils information Center reported that China's wheat sown area in 2008 will be 23 million hectares from the previous year's 22.98 million hectares.

China's wheat output is predicted to reach 112.5 million tonnes this year, 2.64 million tonnes more than 109.86 million tonnes in 2007.

Sun Zhengcai, China's minister of agriculture, said that the country's wheat production is performing well, with the summer grain yield expected to hit a record high in 2008.

As of June 1, China had 6.27 million hectares of wheat, accounting for about 30 percent of this year's total output.

China's lifting of wheat minimum purchase price in 2008 boosted the wheat market, analysts said.

Meanwhile, the Agricultural Development Bank of China has made preparations to provide loans to summer wheat and oil purchase.

The bank has agreed to provide loans for 2,697 companies engaged in wheat purchase in six provinces including Hebei, Henan and Hubei.

The total wheat output in the six provinces is expected to reach 93.45 billion kilogrammes