19:16, 23.03.2009 — Новости
автор: OilWorld.Ru

DJ China Wheat Prices Mostly Stable As Govt Hikes Sales Prices (ENG)


BEIJING (Dow Jones)--Wheat prices in China's major producing areas were
mostly stable in the week to Monday, supported by the government's hike of
wheat sales prices.

  Wheat prices in Dezhou in Shandong province were between CNY1,860-CNY1,900 a
metric ton, stable from a week ago.

  Wheat prices in Huaibei region in Anhui province were stable at around
CNY1,820/ton.

  Last Wednesday, the government further increased wheat auction base prices by
CNY40-CNY60/ton, but this dampened demand.

  During the weekly auctions, the government sold 1.28 million tons of the
wheat it bought under the minimum purchase price program, or 56% of the 2.31
million tons it planned to sell, compared with 1.62 million tons it sold last
week.

  Traders weren't willing to compete for the wheat as they have been buying
actively recently, and higher prices kept them on the sidelines, said Tianqi
Futures in its note.

  Meanwhile, supply will be ample in the coming months as the government needs
to sell more wheat to make room for the purchase of new wheat, which will be
harvested in June, it said.

  Winter wheat growth has almost recovered to last year's level after an
earlier drought, which was largely eased by rainfall and irrigation, said the
Ministry of Agriculture last week.

  China National Grain and Oils Information Center expected wheat demand from
wheat flour processing plants to be mostly stable in the near term, with
purchases likely to increase somewhat on dwindling stocks.


  -Zheng Xiaolu contributed to this story, Dow Jones Newswires; 8610 6588-5848;
tracy.zheng@dowjones.com


  

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