Wheat auctions in Jan. featured a larger trading volume but lower close rate and lower price against the month before. 2.9535 million MT wheat procured at the protective price were sold by auction in Jan., 11.41% more than the month before and 22.69% more than the same period of last year.
Including sales outside the auction market, 3.1133 million MT wheat procured at the protective price were sold in Jan., more than the 2.7218 million MT sold in the month before. 3,400 MT imported wheat was sold in Jan., below the 20,400 MT sold in the month before.
BOABC estimates that the state grain depots may have delivered 4.2 million MT wheat to the market in Jan., accounting for 42% of the consumption in Jan.
By Jan. 23, sales of wheat procured at the protective price totaled 6.3434 million MT in 2008/2009, accounting for 15.01% of the year’s procurement, far below the sales of 10.8029 million MT and the sales ratio of 37.32% scored in the same period of last year.
The stock of wheat procured at the protective price was estimated to be 42.3 million MT at the end of Jan. The government’s wheat stock was estimated to be 64.4 million MT in the meantime, accounting for 90% the nation’s total.
Sales of imported wheat from Sep. to Jan. totaled 1.2738 million MT and its stock volume is still very large.
Wheat auction price averaged RMB1,716/MT in Jan., down 0.41% from the month before, but up 13.06% on the year-on-year basis. Considering currency value change induced by US currency value change, wheat auction price actually rose 0.57% in Jan. over the month before and 30.06% on the year-on-year basis.
The close rate of wheat auctions was 64.78% in Jan., below the 82.55% in the month before, attributable to plenty of release from the state grain depots before the Spring Festival. Considering smaller wheat supply after the Spring Festival and drought conditions, wheat auctions’ close rate and auction price are expected to go up in Feb.
