December 10, 2007

China releases more wheat reserves

China Grain Reserves Corporation (Sinograin), puts more wheat reserves into the grain market this week to stabilize wheat price.

Sinograin, which takes charge of the national grain and edible oil reserves, has asked regional grain depots to add 3.5 millions of wheat reserves in the wholesale market from December 5 to December 6. This increases the quantity of wheat reserves into the market by 6 million tonnes since last week.

Sinograin on November 28 raised the quantity of wheat to be auctioned to 2.5 million tonnes, soaring from 720,000 tonnes in the previous week.

This week, duration for the auction of wheat reserves was extended to two days and the planned quantity has risen sharply to 3.5 million tonnes.

The National Grain & Oil Trade Center announced yesterday that some national corn reserves would hit the market next week. Market watchers predicted the quantity to reach 2.5 million tonnes.

The move is aimed to meet the fast increasing demands before New Year's Day and Chinese traditional Spring Festival and to stabilize the grain prices, said an agricultural consulting services provider in Beijing.