(Yicai Global) Oct. 16 -- There are unlikely to be any great fluctuations in the price of grains this year as China has had a bumper harvest of summer crops and the autumn harvest is assured, the Ministry of Agricultural and Rural Affairs said yesterday. There is therefore no need to speculate and for traders to hoard stocks.
Although the price of wheat has risen, up 0.7 percent in September from the month before and 5.9 percent from the same period last year, it is unlikely to gain much more as China already has enough reserves for an entire year’s consumption and the autumn harvest is due to arrive on the market soon, the ministry said.
Corn prices were affected by the extreme weather in northeastern China in August which lifted the wholesale price of corn to its highest level since 2016. It has since dropped 2.1 percent to CNY2,222 (USD331) and is expected to remain stable in the short run, or even fall further, as the autumn crop reaches the market and stored corn is released from silos.
Substantial gains in the price of unhusked rice are also unlikely as this year’s harvest is a certainty and the nation has enough reserves for over a year, thus guaranteeing market supply.
China’s pig herds continue to recover from a debilitating bout of African swine fever, with the number of fertile sows rising for 11 consecutive months, the ministry said, referring to data it had gathered from 400 counties. Pork prices are expected to fluctuate slightly in the fourth quarter and will not reach the record highs of last year.
Editor: Kim Taylor