China will auction 500,000 tons of wheat from its state reserves on January 5th, the National Grain Trade Center said yesterday afternoon.
The auction, the second significant batch since this year's new harvest, was only open to wheat flour processing companies, according to the announcement.
Bought-in wheat can only be processed by the millers and not sold on.
Chinese feed producers bought wheat from state stocks at auctions last crop year to replace corn, the price of which had soared to record levels.
Strong demand from the feed sector has driven wheat prices soaring around the world this year, while leaders once again focused on security of supply in the world's most populous country.
Beijing sold 891,938 tons of wheat in October at an auction from state reserves open to mills and forage and livestock companies.
The trading center later announced it would sell an additional 40,000 tons of wheat from state stocks on October 27, but has not published any results on its website.
Constant rains have delayed the sowing of wheat in China's main growing areas, which is likely to affect growth as too much soil moisture can cause more disease.
Source
Hansa Terminhandel GmbH