China wheat prices rise slightly, farmers hold out for rally

 

 

Wheat prices in China's major producing regions rose slightly in the week to Monday (June 22), as farmers largely stayed on the sidelines holding out for higher prices.

 

Most of the new crop has been harvested, but farmers were unwilling to sell last week.

 

"New wheat prices are traditionally higher in the weeks after harvesting, so farmers are hoping to get higher prices if they wait a bit," said Hai Yang, an analyst at Zhengzhou Esunny Information & Technology Co.

 

Wheat prices in Buyang in Anhui province were RMB1,720-RMB1,730 a tonne, up from RMB1,680/tonne a week ago.

 

In Dezhou in Shandong, a major producing province, prices were largely unchanged from a week ago at RMB1,800-RMB1,820/tonne, Hai said.

 

In Hengshui, in Hebei province, prices were RMB1,780-RMB1,840/tonne, up RMB20-RMB30/tonne from a week ago.

 

The government is supporting prices with its 2009 wheat purchase programme at a minimum price of RMB1,740/tonne.

 

The programme is drawing cheaper foreign wheat, sharply boosting wheat imports in May to 70,968 tonnes, nearly doubling imports of 34,921 tonnes in April. China didn't import any wheat in May last year.

 

Cooler weather patterns last week didn't significantly affect crops, Hai said.

 

The average auction prices of the old crop also inched higher in the week to Monday, she said.

 

The average auction price in Henan province was RMB1,812/tonne, up RMB3 from the previous week.

 

In Anhui province, the average auction price was RMB1,827/tonne, up RMB4 compared with a week ago.