China auctioned part of its wheat reserves twice within a week in an effort to stabilize the domestic price of wheat. 

The State Grain Administration said the totaled 2.32 million tons of wheat reserves were auctioned in east China's Anhui province and Zhengzhou, capital of central Henan province, on 25 and 30 November with the auction rate of over 80 percent.

The moves came after the country's wheat prices rose sharply and flour production booming. The government earlier this year purchased 41.2 million tons of wheat to fill state reserves and to reinforce its ability to regulate wheat prices.

Wheat processors are now running short of wheat as they increase production as Chinese lunar New Year draws near. "We do not have sufficient wheat supply and we hope the government will sell reserved wheat more quickly," said Lin, marketing manager of Xinliang Grain Processing Group. The administration said the country is preparing to continue to auction its wheat reserves.

Source:佚名