12:16, 21.09.2009 — Новости
автор: OilWorld.Ru

DJ China Wheat Prices Stable As Holiday Demand Reaches Plateau (ENG)


BEIJING (Dow Jones)--Wheat prices in China's major producing regions remained
stable in the week to Monday, as demand has largely reached a plateau ahead of
Chinese holidays beginning Oct. 1.

  In Zibu, Shandong, a major wheat-producing province, prices were
CNY2,000/ton, unchanged from a week ago, said Hai Yang, an analyst at Zhengzhou
Esunny Information & Technology Co.

  In Hengshui, Hebei province, wheat prices were around CNY2,000/ton, also
mostly flat from a week ago.

  Wheat prices depend on flour demand, which traditionally rises in the autumn,
ahead of Mid-Autumn Festival and eight-day National Day celebrations.

  Festival preparations, which involve the mass production of flour-heavy
mooncakes, powered prices upward in recent weeks, but demand traditionally
falls away as the holiday approaches.

  "Demand is unlikely to grow much further from now," Hai said.

  Wheat prices have also risen recently as a drought in major corn-producing
areas in the northeast has raised concerns that output will fall. Corn is a
substitute for wheat in animal feed.

  But corn prices have begun to post declines as weather concerns, including a
warning of early frost, appear overwrought.

  "If farmers can dry the crop out quickly enough, it won't be affected," Hai
said.

  Minister of Agriculture Sun Zhengcai said Monday China's harvest of autumn
crops should be good, barring any major disasters in the latter half of this
year.

  Farmers are making good progress in harvesting corn, soybeans and rice so
far, Sun told a news conference.

  He said 24.6% of corn crops have been harvested so far.


  

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