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在线翻译:
szdaily -> Business
Minimum wheat price cut for first time in over a decade
    2017-October-30  08:53    Shenzhen Daily

THE world’s top wheat producer, China, has cut its minimum purchase price for the grain for 2018 to help whittle its mammoth stockpiles and adjust to the market, the first such move since the policy was launched over a decade ago.

The government has cut the 2018 price to 2,300 yuan (US$346) per ton, down 2.5 percent from this year, the National Development and Reform Commission said Friday.

The new price takes into account “grain production costs, market supply and demand, domestic and foreign market prices and industry development,” the country’s top economic planner said.

The government buys wheat from farmers at the minimum price when the market price drops below that level. But the policy has led to growing State stocks of the grain, even as China continues to import some types of wheat.

The government has abandoned similar programs for cotton and corn in recent years in a bid to better align output with global prices and demand. State wheat stockpiles account for about half the world’s inventory.

Shanghai JC Intelligence Co. estimates there are 74 million tons of wheat in State reserves, in comparison to the nation’s annual consumption of about 100 million tons.

As early as February, a key policy document had warned that the minimum purchase price for wheat needed to be “appropriately adjusted.”

Since then, officials have reiterated the need to adjust the price.

The move is a step toward bringing domestic prices more in line with the international market.

The cut is not expected to immediately impact the market, with a lower price widely anticipated, said Fan Jingya, analyst at COFCO Futures.

She added that most winter wheat has already been planted so a lower price will not affect planting decisions until next year. China produced 127.35 million ton of wheat this year, up 1 percent on 2016.(SD-Agencies)

 

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