2011-02-15 16:50

China's grain supply is in balance with demand and stockpiles ample to meet consumption, the Bloomberg News said on Tuesday, citing a Chinese media's report.

According to the report, Nie Zhenbang, director of the State Administration of Grain, said that the total global trade in grains amounts to 40 percent of China's annual consumption and with tightening supplies in the world market, large-scale imports to meet domestic needs are "unrealistic".

Wheat advanced in Chicago to the highest level since 2008 on Feb 14, and traded at a record in Zhengzhou, China, the report said. Food prices climbed 10.3 percent in January from a year earlier, the news agency reported, citing government data.

China has experienced floods, droughts, frost and other natural disasters and still achieved bumper grain harvests in the past seven years, he said. Grain output reached a record last year of 546.4 million metric tons, the report cited Nie as saying.

There was no mention of the effects on grain output from a drought in the North of the country, it added.

In addition, Snowfalls in China's major wheat-growing regions failed to ease the drought and the dry spell is likely to affect crops, the report cited the deputy director of the State Flood Control and Drought Relief Headquarters as saying.