July 11, 2006

China's wheat supplies may surpass 2006/07 demand by 3.5 million tonnes

China's wheat supplies will probably surpass demand by around 3.5 million tonnes in the 2006/07 marketing year due to a good harvest in the 2005/06 crop year, according to a local analyst Monday (Jul 10).

"China's winter wheat output for 2005/2006 was around 97.45 million tonnes, and there will be a surplus of around 3.5 million tonnes in wheat supplies for 2006/07," said Li Ke, an analyst at China National Grain and Oils Information Centre (NGOIC).

He added that total stocks of wheat, including those of farmers and state warehouses, will rebound after declining for six years since 1999.

China's winter wheat production is expected to rise 8 percent in 2006/07, according to the NGOIC in a forecast last month.