BEIJING, CHINA — China plans to sell 500,000 tonnes of wheat from its state reserves at auction on Jan. 5, Reuters reported, citing the National Grain Trade Center.
The auction, which is the second in this year’s new harvest, is only open to wheat flour processing companies.
Wheat purchased can only be processed by the milling plants and cannot be resold, the notice said.
Feed producers have been purchasing wheat from state stockpiles to replace corn, which was reaching record price levels.
Feed demand also has pushed up prices for wheat just as the nation is renewing its focus on grain security.
A state reserve auction in October, which was open to milling plants and feed and livestock companies, sold 891,938 tonnes of wheat.