China wheat prices rise slightly; colder weather aids storage

Wheat prices in China's major producing regions rose slightly in the week to Monday, as colder weather meant lower storage costs and prompted more buying.

In Dezhou in Shandong, a major wheat producing province, prices were RMB2,120/tonne, up RMB20 from a week earlier, said Hai Yang, an analyst from Zhengzhou Esunny Information & Technology Co.

But prices increased only in some areas, while staying flat in others.

In Jinan in Shandong, prices were unmoved in the week to Monday at RMB1,980/tonne.

In Hengshui, in Hebei province, wheat prices were also unchanged at RMB2,120/tonne.

Wheat demand was slightly higher because it's easier to store flour in colder weather, Hai said.

Flour demand also tends to pick up around the end of the year, as initial moves are taken to build stocks for the Chinese New Year festivities, she said, though next year's Lunar New Year comes relatively late, in February.

US$1 = RMB6.83 (Dec 7)