BEIJING, Aug. 22 -- China's summer grain production is predicted to reach 101.25 million tons this year, an increase of 5.1 million tons or 5.1 per cent as compared with last year, according to the latest monitoring report on the market development trends of wheat, maize, rice, soybean, cotton, oil-bearing seed and sugar crop released by the Ministry of Agriculture on August 19.

According to the report, the wheat production in the summer harvest is predicted to grow about 5 per cent, and the purchasing price of wheat in the main wheat-sowing area in July equaled that of the previous month with a slight rise, putting an end to the decline for four consecutive months, but it was still lower as compared with the year-earlier period.

China imported 2.754 million tons of wheat in the first half of this year, up 1.42 per cent year on year; and exported 93,000 tons, down 83.27 per cent. Thus it scored a net import of 2.661 million tons.

Due to the increase in production and decrease in export, the additional wheat supply will increase moderately. Meanwhile the consumption will drop, but the additional supply will fail to meet the demand of consumption. The amount of wheat kept in stock will fall, but the decline will be smaller than last year. And the ratio of stock to consumption stays in a safe range.

Thanks to the increase in growing acreage, China's early rice production is still expected to have a good harvest, despite the influence by much rain in South China and southern area of the lower Yangtze valley.

With a net import of 184,700 tons in the first half, China's additional supply of rice in the 2005-06 crop year still can not meet the demand of consumption in the same period. The shortage in supply needs to be made up with the reserve. The amount of rice kept in stock thus will continue to fall.

(Source: China Daily/Agencies)