November 29, 2005

China's Shandong to sell 75,000 tonnes wheat stocks Wednesday

China's eastern Shandong province plans to auction off 75,000 tonnes of local wheat reserves Wednesday, a source close to the auction said Tuesday.

The wheat, stored in five government warehouses mostly located in the western part of Shandong, was harvested locally between 2000 and 2002, according to the source.

Domestic grain processors and traders with a licence to trade grains could participate in the auction.

The floor price for the sale would be announced right before the auction.

The planned sale would be the second this year by the local government to replace old reserves with new crop, said the source.

Previously, Shandong province had sold more than 56,000 tonnes of old wheat reserves at an average price of about RMB1,380/tonne in an auction held in May.