China clears 1,935 mt of 2013’s imported US wheat from temporary reserves


China has sold 1,935 mt of imported US Soft Red Winter No 2 wheat through an auction Wednesday from its temporary state reserves at an average price of Yuan 2,534 ($379.15)/mt, up Yuan 28/mt from last average transacted level on July 13, the National Grain Trade Center said in a statement.

The total planned volume for Wednesday’s auction was 37,038 mt of US SRW No. 2 wheat from the 2013 season stored in state-owned warehouses in Zhejiang, Shanghai, Jiangsu, Fujian, Hainan and Qinghai.

Of the six sites, only Shanghai, Jiangsu and Fujian successfully sold some of the offered volumes. Shanghai sold 500 mt, or 4.89% of 10,221 mt on offer, while Jiangsu sold off 800 mt, or 9.61% out of 8,327 mt offered.

Fujian achieved a higher success rate of 20.17%, selling 635 mt out of 3,149 mt offered.

The remaining unsold 35,103 mt is likely to be rolled over and auctioned off in the coming weeks. The state typically reduces its reserves during the harvesting period to create storage space for the new crop, sources said.

Meanwhile, state procurements across six major wheat producing provinces are ongoing and picking up pace, as the government increased storage sites to address flood issues to help affected farmers. According to China-based sources, Henan province — the major wheat producing area — has added 48 sites Tuesday, in order to help speed up state procurements.



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