September 28, 2007

China uses auctions to check prices of wheat, corn

China will sell 200,000 tonnes of imported wheat from its state reserves Saturday, China Zhengzhou Grain Wholesale Market said in a statement Friday.

The government is also preparing to sell corn from state reserves to prevent corn prices from surging and will increase its reserves of grain and edible oils products, it said.

The wheat sale is the latest government auction aimed at stabilizing domestic food prices, which lifted the country's inflation rate to 6.5 percent in August -- the highest in more than a decade.

The State Grain Administration said late Thursday that China will hold auctions of imported wheat once or twice a month to meet domestic demand.

Earlier this week, the government also said it will auction 200,000 tonnes of imported wheat from its state reserves October 12.