August 12, 2004

China's Inner Mongolia To Auction 110,000 MT Wheat

China's Inner Mongolia Autonomous Region plans to auction 110,000 metric tons of spring wheat on August 24, a source close to the auction said Thursday.

The wheat stocks are stored in different locations in Hulunbeier, a city in northeastern Inner Mongolia. The grain was harvested during 2000 and 2001.

Spring wheat in the region is sown in April each year and harvested in August.

The local government of Hulunbeier city approved the sale of the wheat stocks, which were bought several years ago, at a "protective price" set by the state, according to a statement posted on the Web site of the local grain bureau.

The source said the auction price will likely be lower than current market prices. He did not elaborate.

The current price of wheat of the same quality in Hulunbeier city averages RMB 1,350 ($1=RMB8.28) a ton, another source said.

Any enterprise within or outside Inner Mongolia can participate in the auction, the statement said.