December 12, 2005

China's Tianjin sells 800,000 tonnes wheat stocks

China's northern Tianjin city sold 800,000 tonnes of local wheat reserves at an average price of RMB1,371/tonne Dec 8, according to a recent announcement by auctioneer Tianjin Grains and Oil Wholesale Market.

The wheat, owned by the local government, was sold at a price range of RMB1,350-1,380/tonne.

16 buyers attended the auction.

Floor prices for the sale were previously set at RMB1,340/tonne for wheat produced in 2000, RMB1,350/tonne for wheat produced in 2001, and RMB1,360/tonne for the grain produced in 2002.

This is the second time this year that the local government has sold its old wheat stocks and replaced them with new ones.

On May 12, the local government sold about 56,000 tonnes, or about 70 percent, of local wheat reserves set aside for sale through an auction. The reserves were sold for an average RMB1,462/tonne.