China Wheat Prices Stable To Lower On Weaker Seasonal Demand

Wheat prices in China's major producing areas were mostly stable in the week to Monday, with prices in some areas drifting lower on weaker seasonal demand.

Prices in Xuzhou, Jiangsu province, were at CNY1,950 a metric ton, largely unchanged from a week ago.

Prices in Zhengzhou, Henan province, were unchanged at CNY1,980/ton, said Hai Yang, an analyst with Zhengzhou Esunny Information & Technology Co.

Prices in some areas inched slightly lower on weaker consumption as supply was fortified with regular government stockpile sales.

Wheat prices in Dezhou in Shandong province were at CNY2,050-CNY2,060/ton, down about CNY20-CNY30/ton from a week earlier.

"The fundamental picture on wheat hasn't changed in the last week," Hai said, adding that prices are likely to remain stable in the coming weeks.

Recent bouts of low temperatures may hamper the growth of both winter wheat and summer grains, affecting the crops' quality, though the reduced output isn't likely to affect prices much because of ample stocks from previous years, analysts said.

Source: CME Group