The business of stored grain trade in suppressing grain prices has been suspended.

According to informed sources, the grain trade business of the China Grain Reserve Management Corporation (China Grain Reserve) has been temporarily suspended, and relevant documents have been distributed to the county-level grain system step by step.

Yesterday, China Business Daily verified the news to China Grain Reserve, which responded that since the beginning of this year, due to the sharp rise in international agricultural product prices and hot money speculation, domestic agricultural products, including grain prices, have also been on the rise. the state has taken comprehensive measures to stabilize the prices of grain and other agricultural products These include restricting the blind development of corn processing enterprises, reducing subsidies for grain transportation in Northeast China and reducing the main body of market acquisitions. At present, in accordance with the requirements of relevant state departments, the China Grain Reserve Corporation does not start the purchase of grain with the lowest purchase price when the market grain price is higher than the lowest purchase price, and at the same time, it only buys grain reserves by rotation in order to stabilize the market price.

China Grain Reserve also said: "at the same time, we also pay close attention to the situation of farmers' grain sales and the developments of foreign-funded enterprises. Under the current situation that farmers are reluctant to sell, the situation that it is difficult for farmers to sell grain is not serious; however, the intention of foreign capital to swoop in (there are no restrictions on foreign investment) to try to make a comprehensive distribution in China's grain sector has become more and more obvious. "

China stored grain has always been the main force in domestic grain and oil acquisition, and its grain and oil business is generally divided into two categories, one is policy grain and oil business, which buys various grain varieties at the lowest purchase price and temporary purchase price set by the state, stores and auctions, all these belong to policy grain business, and China stored grain can get state-issued acquisition and storage subsidies for these businesses. Analysts say that in addition to this, there is the trade business of stored grain, including being entrusted by grain processing enterprises to collect and store grain on their behalf, or purchasing grain at market prices and then selling them at appropriate prices. trading business is an important source of income from stored grain.

The source said that the purpose of suspending the grain trade business of stored grain in China is to stabilize grain prices. at present, grain prices in the domestic market remain high and continue to rise.

Market monitoring data show that in the week ending October 31, the average transaction price of third-class white wheat in the country's main grain and oil wholesale markets was 2034 yuan / ton, up 18 yuan / ton over last week; the average transaction price of second-grade japonica rice was 2680 yuan / ton, up 36 yuan / ton over last week; third-grade early indica rice was 1992 yuan / ton, up 5 yuan / ton over last week; third-grade late indica rice was 2105 yuan / ton, up 15 yuan / ton over last week In the same period, the average transaction price of medium soybeans in the country's major grain and oil wholesale markets was 3800 yuan / ton, up 24 yuan / ton from last week. In addition, the price of edible oil in the domestic market continued to rise during the same period. The average transaction price of primary soybean oil in the country's major grain and oil wholesale markets was 9500 yuan / ton, up 167yuan / ton from last week. The average transaction price of grade IV rapeseed oil was 9432 yuan / ton, up 178yuan / ton from last week. Among major grain products, the average transaction price of corn alone was 1929 yuan / ton in the week ending October 31, down 6 yuan / ton from last week.

A notice from the National Grain and Oil Trading Center shows that the vast majority of wheat has entered the grain depots of state-owned grain enterprises such as China Grain Storage. According to the announcement, as of September 30 this year, grain enterprises in 11 major wheat producing provinces, including Henan, Hebei, Jiangsu and Anhui, had purchased 51.911 million tons of new wheat in 2010, of which 40.258 million tons were purchased by state-owned grain enterprises. accounting for 78% of the total On the other hand, the entrusted collection and storage sites of China Grain Storage have purchased 22.409 million tons of wheat at the lowest purchase price in Jiangsu, Anhui, Shandong, Henan and Hubei provinces, accounting for 56 per cent of the purchase volume of state-owned grain enterprises.

Previously, Cofco was the only enterprise that bought grain at the lowest price in the country, but as Cofco was allowed to participate in the lowest grain purchase market for the first time this year, the two sides did not hesitate to raise prices in Henan, the main wheat producing area, in order to compete for wheat. Cofco's wheat purchase price once reached 1.01 yuan per jin, much higher than the minimum purchase price of 0.90 yuan per jin, and finally issued a notice to suspend the purchase of wheat. The suspension of trade business this time shows the country's determination to regulate and control grain prices.

At present, the market has two major concerns about the trend of grain prices, both of which are closely related to grain reserves. One is that since the first half of this year, in accordance with the requirements of the relevant departments, China stored grain has put a large amount of rice and corn into the market to stabilize market prices, and the stocks of some grain depots have been greatly reduced. If policy grain purchases are launched at this time to replenish stocks, it is bound to stimulate grain prices to continue to rise. Another concern is whether the independent grain business of China Grain Storage will be carried out on a large scale, which will inevitably drive up grain prices.

A person in charge of a grain processing enterprise said that in addition to the above concerns, a deeper problem of China stored grain trading business also needs to be solved. "China stored grain has a large number of grain sources, and it is very difficult for processing enterprises to bargain with it," he said. China stored grain can control the price of the market to a great extent. On the other hand, some policy grain business of stored grain may also be used. For example, when market prices rise, some grain depots auction policy grain in accordance with state regulations, agree to auction to designated units at prices lower than the market price, and then let these units sell them to processing enterprises that really need grain in the form of trade according to market prices, so as to make a profit. This problem needs to be strictly guarded against. "