August 5, 2008

China wheat prices stable as reserve warehouses finish purchases

Wheat prices in China's major producing areas were mostly stable in the week to Monday (August 4) as many reserve warehouses have completed their planned purchases.

Wheat prices in Zhoukou in major producer Henan province were around RMB1,640 a tonne, stable from a week ago.

Wheat prices in Laizhou in Shandong province were around RMB1,680 a tonne, down from RMB1,700 a ton a week before.

State reserve warehouses have bought enough wheat and are not actively buying any more, said Hai Yang, an analyst at Zhengzhou Esunny Information & Technology Co.

As of July 20, China's grain enterprises had bought 41.49 million tonnes of new wheat in 11 major wheat producing provinces, up 13.62 million tonnes from the same period last year, according to data from the State Administration of Grain.

Of the 41.49 million tonnes, 32.3 million tonnes were bought by state reserve warehouses, up 10.81 million tonnes on-year.