August 30, 2010

China's grain prices seen stable in H2

China's grain prices will be stable in the second half of this year on ample stocks and an expected good harvest, government officials said on Friday (Aug 27).

The government will sell its reserved grain based on market demand to keep the prices stable in the second half, the National Development and Reform Commission's deputy chief Zhang Xiaoqiang said.

The rise in global grain prices will not have a significant impact on local grain prices, because China is self-sufficient on most grain crops, Zhang added.

Meanwhile, a good autumn harvest is expected due to the rise in planting areas and generally good crop growth, said Ministry of Agriculture Deputy Minister Chen Xiaohua.

Autumn grain output accounts for more than 70% of the country's total grain production.