August 28, 2018
China to release wheat reserves due to impacts from bad weather
After outputs in major growing areas are impacted by bad weather this year, China will be dispensing state wheat reserves, according to an official at the country's grain administration.
Chen Shuyu, a spokesman for the State Grain and Reserves Administration, shared that state wheat inventories were still ample, despite the drop in output and market supplies would be fully guaranteed.
"Government authorities will closely monitor the wheat market and release some of the state wheat stockpiles at an appropriate time to meet market demand and avoid drastic price fluctuations," Chen said.
Windy and rainy weather, a longer market-based purchasing period and the reluctance of farmers to sell wheat due to expectations that prices will rise are some of the main reasonsin the decline in purchases from a year earlier.
Wheat output from China's summer harvest fell 2.4% to 128.35 million tonnes.
Source: Business Times