BEIJING, China (Reuters) – Chinese wheat prices jumped recently, rekindling worries over possible food shortages ahead of the New Year festival, traders said Dec. 1.
They said wheat prices gained about $12 US between Nov. 29 and Dec. 1 to $199 per tonne in both southern consuming areas and northern producing provinces.
“There’s a little panic,” said a Beijing-based analyst. “Feed millers are having difficulties in buying wheat from farmers as they don’t have much left.
“Wheat in their hand is their food. They don’t want to sell before the next harvest.”
The traders said U.S. wheat was still too expensive for private import deals, but they saw the possibility of higher Chinese domestic wheat prices as the country enters the peak consuming season ahead of the Chinese New Year celebration in January.
“I don’t think supply is really tight,” said another trader in Shanghai.
“For wheat, reserves should be still very big … But maybe in 2004, the (import) quantities will become bigger.”
