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China's largest wheat-producing province of Henna sold about 700,000 tonnes of stocks during a weekend auction, only half of the amount planned, market officials said on Monday.

The province sold 258,000 tonnes of Canadian wheat at the highest price of 1,930 yuan ($238.8) per tonne, said one market official.

Only 430,000 tonnes of a planned nearly 1.0 million tonnes of domestic wheat was sold, at prices of between 1,340-1,360 yuan per tonne.

"Flour mills are not active in buying, and also the bidding prices were set too high for domestic wheat," said another official.

They said market sentiment was bearish even though prices usually pick up ahead of Chinese New Year, which falls in January.

"There are sufficient supplies and flour mills are not building up stocks," said the second official. They expected domestic prices to keep low.

Wheat prices fell 1 percent to 1,420-1,380 yuan per tonne in Henan this week from last week.

Copyright Reuters, 2005


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