November 4, 2005

China's Henan to sell nearly one million tonnes wheat stocks
 

China's Henan province planned to sell nearly one million tonnes of old wheat reserves Saturday, according to an official with auctioneer Henan Grains Trading and Logistics Market.

The wheat, stored at various locations in the province by local governments, was produced in Henan between 1998 and 2003, said the official. "But a large portion of them was produced around the year 2000."

Grain traders or processors with licenses to trade grains in China were allowed to participate in the auction.

Floor prices for the sale would be announced later, the official said.

Earlier Friday, Zhengzhou Grains Wholesale Market had sold about 250,000 tonnes out of 447,000 tonnes of state wheat reserves, according to a source familiar with the auction.

The wheat, all of which was imported, was sold at an average price of RMB1,843/tonne, the source said.

The two auctions were part of a two-day wheat trade fair being held in Zhengzhou, the capital of Henan province.