China will sell 100,000 tons of rapeseed oil this Friday March 8, 2013, said China National Grain and Oil Trade Center on its web site. Industry sources estimate the sales prices at 9,800 yuan (US$1,560) per ton. The auction is viewed as part of the government’s plan to sell 1 million tons of rapeseed oil between March – June this year in order to release old stocks and make room for new stocks.
The Chinese government purchases rapeseed oil every year in order to boost domestic production and control rapeseed oil prices. Beijing has sold a total of around 2 million tons of reserve rapeseed oil between the end of 2008 and May 2011.
The previous sales of rapeseed oil from state reserve started in October 2010 and lasted till May 2011. During this period, the government sold a total of 1.4 million tons of rapeseed oil from reserves. Currently, the stocks of rapeseed oil at state reserves are estimated at 3.9 million tons.
Source: BlackSeaGrain Mar 2013