February 26, 2007

China wheat prices to stay stable this week; trade seen light

There was little wheat traded in China's major wheat-growing province in the past week due to the Lunar New Year holiday, which fell on Feb 18 this year.

Government offices, businesses and financial markets were closed Feb 19-23 for the holiday, and farmers usually have a longer break, which started earlier and can last as long as a month.

Trade is likely to be active only after the Lantern Festival, which falls on Mar 4 this year.

Wheat prices will likely remain stable this week at the level before the holiday, ranging from RMB1,480-1,580/tonne in Henan, Hebei and Shandong provinces, said Hai Yang, a wheat analyst at Zhengzhou Esunny Information Technology Co.

But prices may stay high at RMB1,400-1,600/tonne this year as dry weather will reduce the country's wheat output, she said.