BEIJING, CHINA — China sold 88.5% of its wheat on offer in the first auction of state reserves with the new harvest, Reuters reported, citing the National Grain Trade Center.
The 891,938 tonnes of wheat was sold at an average price of $371 per tonne, lower than the current cash price of wheat.
Feed producers had been buying wheat from the state stockpiles in the last crop year to replace corn, which had experienced soaring prices. Corn prices have fallen recently, which caused feed producers to switch back to corn.
Rains in northern China damaged the quality of some corn, Reuters said, which could mean more demand from the feed sector.