November 16, 2011

China sold 80,219 tonnes of feed-grade wheat, or 64% of the volume offered, to feed mills and livestock producers in an auction Tuesday (Nov 15), the National Grain & Oil Trade Centre said.

China has held weekly auctions of feed wheat since March to help control food-driven inflation, following a jump in domestic corn prices caused by tight supply.

So far, the government has sold 1.56 million tonnes of feed wheat.

Before the release, the government held about 1.6 million tonnes in its reserves, which is likely to run out by the end of this month.

Since hitting a high in September, China's corn prices have fallen more than 15%, as a record harvest eased supply tightness.

The price of feed-grade wheat averaged RMB1,891 (US$298)/tonne Tuesday, 20% below market corn in major hog-producing provinces.