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Stockpiles, harvest keep grain prices safe

0 CommentsPrint E-mail Global Times, August 16, 2010
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China's grain price would not see big changes during the second half of the year, said a price setting official over the weekend.

The official at the National Development and Reform Commission was quoted anonymously by the Xinhua News Agency Friday as saying the grain price in the international market would also be stable.

Despite weak output and an export drop from major wheat producers like Russia, Ukraine and Kazakhstan, the demand and supply can still be met in the international market. The recent grain price boom was driven by speculation and would not last, said the official.

The price of major grains - corn, rice and wheat - rose about 12 percent from last year, according to the NDRC. These crops saw a more than 50 percent price increase on the international market.

The country has sufficient inventory to limit the grain price to just a slight increase, said the official, referring to successive years of bumper harvests. China produces about 95 percent of its grain consumption. However, the official said that there is uncertainty about the late-season grain output, which accounts for two-thirds annual total. Farmers planted early-maturing species, which yield less and are of lower quality, to catch up the season because the early grains harvest was delayed due to cold weather in the first half of the year.

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