China auctions wheat reserves for the fifth time since November

China auctioned 833,000 tons of its wheat reserves this week, the fifth such auction since November in a bid to halt rising prices on the domestic market.

The wheat sold for a total of 1.26 billion yuan (around 161.3 million U.S. dollars) in East China's Anhui Province, North China's Hebei Province and Zhengzhou, the capital of Central China's Henan Province, said sources with the State Grain Administration.

The administration had planned to sell one million tons of wheat during the auction.

The move came after grain prices rose in November. Figures with the National Bureau of Statistics show that the price of grain products rose 4.7 percent in November.

The government has intervened in the market periodically by selling grain reserves with the Chinese Lunar New Year when more flour is used.

China sold more than 3.75 million tons of its reserves in the last four auctions. Earlier this year, the government purchased 41.2 million tons of wheat to fill state reserves and to reinforce its ability to regulate wheat prices.

Source: Xinhua