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ReturnChina:How high will grain price go?
Author：
admin
PublishDate：
2006-12-21 17:04:00
Hit：
282
Grain price is fluctuating recently and for some types of grain, price fluctuation is relatively large. Some people worry about the price hike in grain, wondering how high it will climb. Analysts say that in China, there isn’t much shortage of grain supply. Such price hike will not last long and the fluctuation range won’t be very big, the China Securities Journal reported.
China’s crop harvest has increased for three consecutive years. In 2004 and 2005, crop harvest grew by 38.8 billion kilograms and 14.5 billion kilograms respectively. It is expected that in 2006, China’s grain output will reach 490 billion kilograms. The balance in grain supply and demand makes it unlikely for the price to rise for a long time to come.
At present, Chinese government has started to open its grain depot for sale of grain in an attempt to curb the soaring grain price. In 2007, China will attach more importance to food safety and make more efforts to protect grain farmers’ interest. Except for some irresistible causes, such as big natural disasters, Chinese grain output will not drop substantially, if we cannot expect it to grow greatly. In other words, grain supply and demand will remain at a balanced level in future.
Source: Chinanew
China’s crop harvest has increased for three consecutive years. In 2004 and 2005, crop harvest grew by 38.8 billion kilograms and 14.5 billion kilograms respectively. It is expected that in 2006, China’s grain output will reach 490 billion kilograms. The balance in grain supply and demand makes it unlikely for the price to rise for a long time to come.
At present, Chinese government has started to open its grain depot for sale of grain in an attempt to curb the soaring grain price. In 2007, China will attach more importance to food safety and make more efforts to protect grain farmers’ interest. Except for some irresistible causes, such as big natural disasters, Chinese grain output will not drop substantially, if we cannot expect it to grow greatly. In other words, grain supply and demand will remain at a balanced level in future.
Source: Chinanew
