Abundant wheat supplies will limit the growth of China's domestic wheat prices, the National Grain & Oil Trade Center said. The NGOTC made its forecast based on a recommendation by its affiliated agency, the National Grain & Oil Information Center (NGOIC), which said China would have a small wheat surplus in 2007.

China's wheat output in 2007 is expected to grow by 5.65 percent to 102.96 million tons.  Winter wheat output will increase 7 percent to 97.80 million tons but spring wheat output will drop 1.44 percent to 5.16 million tons, according to the forecast.

Wheat prices will probably be more stable than soybean and corn this year. Unlike corn and soybeans, wheat is mainly used for food or food-processing.  As a result, if the market supply situation is clear, there are few fundamentals to move prices.

Wheat prices in China remained sluggish early last year thanks to a bumper harvest.  However, the prices moved up quickly in October and November when the central government began purchasing wheat from farmers in an effort to protect their income.

Source:未知