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UPDATE 1-Wheat sales from China's state reserves shoot up amid high corn prices

 (Adds comments, more details, table)
    BEIJING, Nov 2 (Reuters) - China sold 2.699 million tonnes
of wheat from state reserves last week, continuing strong sales
from the previous week, the National Grain Trade Center said on
Monday, as users scrambled to stock up on the grain amid soaring
corn prices.
    China, the world's largest wheat producer and user, sold
67.74% of the wheat put up for auction during a weekly sale,
according to a statement on the trade center's website, as feed
makers bought the grain to substitute corn, which is getting
increasingly expensive on tightening supplies.
    The sale, made at an average price of 2,356 yuan ($352.04)
per tonne, was up from 2,316 yuan per tonne in late June, when
the data was available on the official website for this year's
wheat auction results. 
    "Sales (of wheat) started to go crazy in the past couple of
weeks, with big chunk of buying from feed producers, because
corn prices have gone up so much lately," said a China-based
trader involved in the auction. 
    "There is no real shortage of grains, but people are
grabbing for grains for next year. It is pretty scary," said the
trader, who declined to be named as he was not authorised to
speak to the media. 
    Auction rates for wheat had been very low this year, at
around 10% and below in September, and only started to shoot up
lately as corn prices spiked.
    China's corn futures hit highest record end of last month
before edging down slightly.
    Wheat prices also went up on strong demand from feed sector.
Prices in Shandong CFD-WHT-HZCTCE, a top producer, rose to
2,430 yuan per tonne as of Monday, their highest since February,
2019. 
    Corn prices were expected to keep going up, meaning sales of
wheat from the state reserves in coming weeks would remain
strong, analysts said. 
    The table below shows the volume of wheat sold at weekly
auctions from China's state reserves since June 22 this year.
    
 Auction    Total up    Total     Percentage  Average price
 date*      for sale    sold      sold        (yuan per
            (tonnes)    (tonnes)              tonne)
    28-Oct     3983946   2699068      67.74%          2,356
    21-Oct     3984332   2924939      73.41%          2,357
    14-Oct     4015809   1654115      41.19%          2,347
    28-Sep     3013958    367930      12.20%          2,342
    23-Sep     3041332    227835       7.49%          2,312
    16-Sep     3053816    238510       7.81%          2,310
     9-Sep     2075956    184083       8.86%          2,303
     2-Sep     2029753    116176       5.72%          2,351
    26-Aug     2026128    156314       7.71%          2,348
    19-Aug     2051998    318897      15.54%          2,359
    12-Aug     1117052    430129      38.50%          2,360
     5-Aug     1046249    214342      20.48%          2,346
    29-Jul     1098145    229923      20.93%          2,328
    22-Jul     1040199     18395       1.76%          2,367
    15-Jul     1042977     61109       5.85%          2,346
     8-Jul     1058876     29285       2.76%          2,364
     1-Jul     1049901      8780       0.83%          2,337
    22-Jun     1058852      3959       0.37%          2,316
 Auctions results for this year's wheat sale from state
 reserves were available from June 22 on the trade center
 website 
 
($1 = 6.6924 Chinese yuan)

 (Reporting by Hallie Gu and Dominique Patton; Editing by
Muralikumar Anantharaman and Uttaresh.V)
  
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