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Grain Prices Start to Level Off in China
The grain price hikes that have occurred in China in recent months are gradually winding down, according to the National Development and Reform Commission .
Wheat prices, which spearheaded the price climb last November, have dropped for the third consecutive week in Henan, Shandong and Hebei provinces, major grain production bases.
The average price of rice, wheat and corn stood at 1,506 yuan per ton during Jan. 18-24, equivalent to the previous week, statistics from the NDRC showed.
Industry analysts have attributed the decline to a bumper harvest as well as governments moves to secure the market and curb grain prices.
However, as a net soybean importer, the prices will not drop in the near future as the international soybean price remains at a high level, analysts said.
Last year, grain prices went up by 2.7 percent on 2005, with the growth rate 1.3 percent higher than that of 2005.
To stabilize soaring grain prices, the Chinese government has continuously released its wheat and rice stockpiles. Through the latest auctions, China released 392,900 tons of wheat and 145,100 tons of rice onto the market.
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