China wheat prices rise: flour demand increases and supply is tight
China wheat prices rise as flour demand increases and supply is tight
BEIJING, Nov 16 - Wheat prices in China's main producing areas mostly rose in the week to Monday, driven by increased flour demand and reduced supply.
In Shijiazhuang, Hebei province, the wheat price was 2,080-2,110 yuan per ton, up 20-30 yuan from last week.
In Dezhou, Shandong province, the wheat price ranged from 2,040-2,050 yuan.
Due to increased demand, processing plants and feed mills increased their purchases, but farmers held back from selling because of rising prices and tight supply.
Recent heavy snow in the main wheat-producing areas affected transportation.
Analysts said winter wheat sowing is almost complete, but it must be protected from low temperatures.
An analyst at China Grain Network said that due to holiday consumption at the end of the year, demand for wheat flour may increase near the end of the year, pushing wheat prices higher.
Last week, the government sold 374,700 tons of wheat in its weekly auction, or 21% of its planned sale volume of 1.8 million tons.
The average selling price was 1,856 yuan per ton, up 7 yuan from last week.
In Shijiazhuang, Hebei province, the wheat price was 2,080-2,110 yuan per ton, up 20-30 yuan from last week.
In Dezhou, Shandong province, the wheat price ranged from 2,040-2,050 yuan.
Due to increased demand, processing plants and feed mills increased their purchases, but farmers held back from selling because of rising prices and tight supply.
Recent heavy snow in the main wheat-producing areas affected transportation.
Analysts said winter wheat sowing is almost complete, but it must be protected from low temperatures.
An analyst at China Grain Network said that due to holiday consumption at the end of the year, demand for wheat flour may increase near the end of the year, pushing wheat prices higher.
Last week, the government sold 374,700 tons of wheat in its weekly auction, or 21% of its planned sale volume of 1.8 million tons.
The average selling price was 1,856 yuan per ton, up 7 yuan from last week.