BEIJING, Dec 9 (Reuters) - China, the world’s biggest consumer of edible oils, will restart its regular weekly sales of rapeseed oil from state reserves by offering 63,800 tonnes on Friday, according to an official announcement.
Friday’s sale includes stocks stored from 2009 and 2010, according to a statement posted on an official website late on Tuesday (www.grainmraket.com.cn).
“The sate reserves are too high and they have been trying to reduce some stocks which have been stored too long,” said Lu Yun, an analyst with Shanghai JC Intelligence (JCI).
China’s state sales of rapeseed oil were sluggish in the first half of the year, with market participants saying Beijing set bidding prices too high for poor-quality stocks.
The government is still sitting on about 5.8 million tonnes of rapeseed oil stocks, including 400,000 tonnes stored in 2009 and 800,000 tonnes stored in 2010, according to JCI.
News of the sale has pressured domestic Zhengzhou rapeseed oil futures <0#COI:>. The front-month contract was trading 2.33 percent down at 5,746 yuan ($894.46) per tonne by 0213 GMT.
$1 = 6.4240 yuan Reporting by Niu Shuping and David Stanway; Editing by Joseph Radford