Procurement of new wheat in ten major production provinces such as Shandong, Henan, Hebei, etc. totaled 27.357 million MT by June 30, of which 24.796 million MT were procured by state-run companies, less than the same period of last year by 1.176 million MT and 1.283 million MT respectively.

Procurement of new wheat at the protective price total 27.17 million MT by July 10, a decrease of 1.46 million MT on the year-on-year basis. Henan, Anhui and Shandong ranked top three with a procurement of 13.91 million MT, 4.42 million MT and 3.43 million MT, down 2.88 million MT, 940,000 MT and 110,000 MT respectively on the year-on-year basis.

The Ministry of Agriculture estimates that wheat production may be 110.2 billion kilograms this year, less than last year. BOABC predicts a total wheat production of 112.05 million MT in 2009/2010, down 0.48% from last year. Taking into account of a smaller wheat production than last year, sprouted wheat seeds in some regions and increasing wheat consumption for industrial and feed uses, the nation’s wheat safety index is about 47.28% in 2009/2010, less than last year.

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Inside This Issue

News Briefs 1

Wheat Production Estimated to Drop Slightly 2

Early Indica Protective Procurement Kicks Off 4

State Corn Reserve Expected to Increase 6

Weather & Crop Conditions 7

Crop Conditions 7

Weather Forecast (Jul 17, 2009?Jul 23, 2009) 8

Price Trends 8