August 30, 2012

China sells 13.29% of wheat reserves

China sold 13.39% off its 341,363 tonnes of its wheat reserves at a weekly auction on August 29, said the National Grain and Oil Trade Center on its website.

Average trading prices stood at CNY2,079 (US$327.13) per tonne compared with market prices of around CNY2,200 (US$346.17) per tonne.

The transaction rate was higher than the 11.51% recorded at the previous auction of reserve wheat where a similar volume of wheat was offered.

Boosted by strong purchases from the state stockpiler as well as restocking demand from flour mills, wheat prices have increased recently and this helped buoy trading at the reserve wheat auction where lower-than-market prices were offered.