November 25, 2003

China's Shanxi To Sell 200,000 MT Old Wheat In Auction Friday

Shanxi province in northern China is scheduled to sell 200,000 metric tons of old wheat from state reserves Friday, according to an official from Shanxi Provincial Grain & Oils Wholesale Market Tuesday.

"We will hold the auction on Friday, to sell 200,000 tons of old wheat," said the official.

Potential buyers must be domestic ethanol producers or feedstuff producers, added the official.

Local traders in Beijing said the scheduled sale is part of government efforts to increase supplies and cool down the market.

After the rapid rally in local grain and oils markets since early October, fueled by the sharp rise of soymeal prices, China's government has decided to release more grains from state reserves to lower prices, they said.

China's government holds grain auctions each year to rotate old grains with new crops.