December 11, 2003

China's Shanxi Province Sold 200,000 MT Old Wheat Late November

The local government of Shanxi province in northern China sold nearly 200,000 metric tons of old wheat from state reserves in an auction held late November, traders in Beijing said

Thursday.

The sale included 198,480 tons of old wheat, sold at an average price of 1,126 yuan ($1=CNY8.28) a ton. The prices ranged from CNY860/ton to CNY1,210/ton, traders said.

Prices of normal grade wheat in northern China have risen to CNY1,450/ton- CNY1,600/ton in recent weeks, from CNY1,280/ton to CNY1,400/ton in late November, largely because of increased demand and limited supply amid logistics woes.

Since November, the Chinese government has stepped up sales of wheat from state reserves in an effort to keep prices from rising too sharply, local traders in Beijing said.

Friday, China's Henan province will hold an auction to sell around 200,000 tons of old wheat from state reserves, traders in Henan said.

In late-December, China's Henan province will offer another 750,000 tons of old wheat for sale in an auction, traders said.