June 30, 2012

China's reserve wheat sells 2,000 tonnes

The reserve wheat of China has sold out 0.56%, or 2,000 tonnes, of the 358,837 tonnes it offered at a weekly auction on Wednesday (June 27), the National Grain and Oil Trade Center stated.

Specifically, 2,000 tonnes or 15.03% of the planned 13,305 tonnes of mixed wheat was sold at the auction, at an average price of RMB2,100/tonne (US$330), while 345,532 tonnes of white wheat attracted no bidders.

The transaction rate was far lower than the 5.85% recorded at the previous auction of reserve wheat where a similar volume of wheat was offered, as expectations for bumper summer harvests suggested an unpromising outlook for wheat prices and thus dampened trading enthusiasm for reserve wheat.