July 12, 2007

China's grain prices up in June

The average purchase and distribution prices for grains in China climbed in June compared to the previous month as global grain prices continue to rise in the bid for more grains to produce ethanol, China's top economic planning agency said.

The national average purchase and distribution prices for rice, wheat and corn have both grown by 0.9 percent to RMB 76.8 and RMB 79.7 per 50 kilogramme respectively, according to the National Development and Reform Commission.

While wheat purchase prices fell 1.5 percent to RMB 72.6 per 50 kilogrammes due to the entry of new wheat, soy

went up 3.1 percent at RMB 143.2 per 50 kilogrammes.

Soy was purchased by grain crops firms at RMB 143.2 and sold at RMB 148.3.

In wholesale markets, the prices for rice, wheat, corn and soy have grown by 2 to 17.6 percent compared to last year.

The commission attributed the price hikes to the rising world demand for corn and soy sparked by bio-fuels. It further added that the price hikes were also a form of compensating local farmers who faced rising production costs and low yields.