China wheat prices mostly stable; up in some areas on supply

China's wheat prices in major producing areas were mostly stable in the week to Monday, with prices higher in some regions due to seasonal demand and transportation difficulties ahead of the year-end holidays.

Wheat prices in Zhengzhou in Henan province were around RMB2,000 (US$293) a tonne, unchanged from a week earlier.

Wheat prices in Hefei in Anhui province were up RMB10 (US$1.46) at RMB1,950-RMB1,970/tonne (US$285.5-US$288.4).

As flour sales increased ahead of the year-end holidays, processors were buying the crop actively, pushing up prices, analysts said.

Farmers were reluctant to sell due to expectations that government support would lead to higher prices, they said.

However, the government's regular sales have helped to curb the rise in wheat prices by easing tight supply.

Last week, the government sold 745,800 tonnes of wheat during its weekly auctions, or 38% of the 1.99 million tonnes it planned to sell.

The average price was RMB1,856 (US$272)/tonne, unchanged from the week before.

Wheat prices are likely to be supported at current levels or rise further in the near term as transportation is usually tight near the end of the year, while high demand will also help to support the prices, analysts said.