BEIJING (July 15 2003) : China's powerful National Development and ReformCommission said on Monday it would sell 800,000 tonnes of soyabeans fromstate reserves to meet huge demand in the domestic crushing industry.
Traders said the news dampened Dalliance soyabean futures across the boardon Monday, with the most active November contract falling 12 yuan to 2,415yuan ($291.8) per tonne.
"The soyabeans will be sold via bidding at wholesale grain markets toboost soyabean supplies on the domestic market and stabilise soyabeanprices," the commission said at its Web site www.sdpc.gov.cn.
It did not say when and where the soyabeans would be sold and governmentofficials were not immediately available for comment.
Analysts said a series of auctions would be held at major wholesalemarkets in north-eastern provinces, China's key soyabean growing areas, tocurb a flood of imported soyabeans.
"Imports rose too much and the government wants to try and control that,"said one-grain analyst, adding that the government intended to cap importsat 14 million tonnes this year.
China's soyabean imports surged 168.5 percent in the first five months ofthis year to 7.66 million tonnes.-Reuters