Wheat reserves tapped to counter inflation

China's national grain reserve agency has allocated 2.5 million metric tons of wheat from national reserves to be sold on the Anhui and Henan grain markets in order to stabilize the market price, Chinanews Net reported (in Chinese). Demand for wheat has been strong due to the upcoming Chinese New Year holiday, but farmers have been unwilling to sell, expecting further price increases in the future, said Ma Wenfeng, an analyst from local agricultural consultancy BOABC. The price increase has transmitted to wheat powder manufacturers and wholesale market. Reports from Guangzhou and Shanghai showed that retail prices of wheat products like noodles and bread were expected to go up in the next month.