China's economic regulator says China will keep grain prices balanced and reasonable, despite the international price surge.

The National Development and Reform Commission pointed out the recent rise in global wheat prices resulted from short-term speculation. International wheat prices rose greatly after Russia reported a sharp decline in wheat output, following its devastating drought.

The Chinese government says China could meet its demand for wheat as most of its farms grow grains, so the domestic prices won't be affected. But the government also says special attention should be paid to this year's extreme weather, as it could cause losses to agriculture.