April 20, 2011
China has sold 112,361 tonnes of feed wheat from state reserves on Tuesday (Apr 19), bringing total sales to 353,072 tonnes since the government initiated the sale late last month.
Sales of feed wheat would help ease tight corn supplies for feed mills. Beijing has also restricted purchases of corn by processors from farmers to ensure ample supplies for mills.
Local media reported this week that government authorities have recently asked banks to stop issuing new loans to processors buying corn from farmers.
Expansion of the industry, which produces products including starch, ethanol and sweetener, has been cited by grain officials as reasons for tightening domestic supplies and prompted China to return to the world market again last month, traders said.
China restricted the bidding only to some big feed mills and also capped their purchase volumes. The sales do not reflect the true picture of demand from feed mills.
On Tuesday, the government also sold 92,651 tonnes of corn, bringing total state sales to 53.69 million tonnes since 2008.