China's wheat supply in 2004-2005 increased over the previous period, and the aggregate supply is adequate to satisfy domestic demand, announced the Ministry of Agriculture (MOA) on Monday.

According to the MOA, the volume of wheat supply in the 2005-2006 period is expected to continue rising, but it might still be necessary to draw on stocks to satisfy the aggregate domestic consumption demand. However, domestic consumption is expected to decrease.

In the first three months of this year, China imported 1.9 million tons of wheat, more than 6 times over the same period of last year. Exports totaled 18,900 tons, amounting to a 93.1 percent decrease.

Price-wise, April sale prices in the major wheat producing areas fell to 73.2 yuan (US$8.8) per 50 kg, 1.0 percent lower than in March. In Zhengzhou, in central China’s Henan Province, the wholesale price of normal wheat was 77.5 yuan  (US$9.4) per 50 kg in April, down 1.1 percent from March, and down 1.3 percent compared with last April; the wholesale price of high-quality wheat was 80.5 yuan (US$9.7) per 50 kg, down 0.2 percent from March, and 3.4 percent compared with last April.

As for weather conditions since April, spring wheat producing areas such as the middle and western parts of China's northwest and the south of Heilongjiang Province have had moist soil, which is good for sprouting and seedling growing; but, rainfall has been inadequate in the east of Gansu Province, the middle of Inner Mongolia and the west of Heilongjiang Province where dry soil has affected the sprouting process. Meanwhile, there has been too much rain in the north of Heilongjiang, which has adversely affected the sowing process.

In the three winter wheat producing bases in Henan, Shandong and Hebei provinces, the wheat is in the jointing stages now, with sprouting occurring in some places.

(China.org.cn by Zhang Tingting, May 19, 2005)