August 19, 2008

China's wheat price is expected to go up moderately this month based on the purchase course in six major wheat-producing provinces.

According to the National Grain & Oil Trade Centre, wheat prices have stayed high even with trade volume declining in these provinces.

Grain purchasing and storage enterprises are expected to defer or suspend the purchase of wheat due to current high prices.

In addition, processing enterprises and brokers had no strong need for wheat as they had more wheat on hand than the same period of last year.

By late July, wheat purchased by state-owned grain enterprises, traders and flour factories totaled 10.367 million tonnes, higher than the figure of 6.6 million tonnes in the same period of last year.