August 25, 2009
China wheat prices tad up
China's wheat prices in major producing areas were slightly higher in the week to Monday (August 25).
Wheat prices in Hefei in Anhui province were RMB1,820 (US$266.43) to RMB1,830 (US$267.88) a tonne, up RMB10/tonne from a week earlier.
Wheat prices in Dezhou in Shandong province were also RMB10/tonne higher at RMB1,890-RMB1,900/tonne.
Flour demand improved as the weather gets cooler and preparations began for the National Day holiday and Mid-Autumn Festival in early October, said analysts.
Meanwhile, farmers have been reluctant to sell their crops unless they need money urgently, as they expect prices to rise, said Hai Yang, an analyst with Zhengzhou Esunny Information & Technology Co.
Farmers in most major wheat producing areas have kept more than 60 percent of their harvest this year, more than they retained last year, according to data from China Zhengzhou Grain Wholesales Market, which said in a note that it expects new wheat prices to fall later due to ample supply.
Last week, the government sold 166,410 tonnes of wheat it bought under the minimum purchase prices programme, or 11 percent of the 1.5 million tonnes it planned to sell.
US$1 = RMB6.83 (August 25)
