July 4, 2007

China likely to export more wheat with higher production

Wheat production is expected to be higher in China this year as more farmers are planting wheat due to stable prices and less labour.

Wheat production may rise 2.2 per cent this year to 107 million tonnes, compared with last year's 104.7 million tonnes, Shang Qiangmin, head of the China National Grain and Oils Information Center, said.

A higher level of government subsidies such as the minimum price guarantee for wheat, along with better technology, were said to be the chief reasons behind the higher production.

The bigger crop would allow China to increase its wheat exports to nearby Asian countries in competition with wheat from Canada, US and Australia. This competition would serve to cool down prices, which have reached record highs recently.