China wheat prices rise as farmers hold out for higher prices

 

 

Wheat prices in China's major producing regions rose in the week to Monday (July 13), with farmers in some producing areas still holding out for higher prices.

 

"Farmers have generally not been very happy with new wheat prices, so some of them have been holding back stock from reaching the market," said Gao Yanrong, research manager for Dalu Futures.

 

Wheat prices in Buyang, in Anhui province, were at RMB1,830 a tonne, up about RMB50 from a week earlier, said an analyst from Shanghai JC Intelligence.

 

In Zibu in Shandong, another major producing province, prices were at RMB1,900/tonne, up RMB40 from a week ago.

 

In Hengshui, in Hebei province, new wheat prices were around RMB1,890/tonne, mostly flat from a week ago.

 

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

 

"The government's stockpiling programme is expected to be larger this year," Gao said.

 

The government has so far sold about 25 percent of the 1.49 million tonnes it plans to sell.

 

Still, the overall demand picture hasn't changed much, Gao said.

 

Average auction prices stayed largely flat in the week to Monday, at RMB1,820/tonne in Anhui province.