October 27, 2009
China wheat prices stable; trading thin
China's wheat prices in major producing areas were mostly stable in the week to Monday (October 26), with trading thin amid steady flour demand.
Wheat prices in Hefei in Anhui province were RMB1,880 (US$275.29) to RMB1,890 (US$276.76) a tonne, unchanged from a week ago, and RMB1,960/tonne in Shandong province, stable from a week earlier.
With flour demand not as strong as it was prior to the week-long National Day holiday in early October, cash trading has been sluggish.
The government's base sale prices of wheat have been hiked by RMB40-RMB50/tonne from Oct. 21, but this has had little impact on the market, with cash prices staying at high levels, said analysts.
The drought in major growing areas in Shandong and Anhui, which will affect the winter crop, hasn't impacted market prices yet, said Hai Yang, an analyst with Zhengzhou Esunny Information & Technology Co.
She expects wheat prices to remain stable in the near term.
The government sold 685,300 tonnes of wheat during its weekly sales last Wednesday, or 38 percent of the 1.79 million tonnes it offered to sell.
US$1 = RMB6.82 (Oct 27)
