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SunSirs: China's wheat prices were strong last week (8.3-8.7)

August 10 2020 09:53:21     SunSirs (Linda)

1. China's wheat price trend

According to the monitoring of SunSirs, the domestic wheat market prices were slightly stronger last week. The average price at the beginning of the week was RMB 2,360.00/ton, and the average price at the weekend was RMB 2,384.00/ton, a slight increase of 1.02%.

2. Market analysis

Entering August, supported by various favorable factors such as deep processing companies’ price increases, continued tight transportation conditions, and corn substitution, domestic wheat market prices continued to operate steadily and on the strong side. The domestic wheat market prices rose slightly by 1.02% this week.
As of July 20, the total purchase of wheat in the main producing areas was 36.67 million tons, a year-on-year decrease of 5.520 million. Among them: Hebei purchased 2.989 million tons, a year-on-year decrease of 142,000 tons; Jiangsu purchased 9.484 million tons, a year-on-year decrease of 91,000 tons; Anhui purchased 5.089 million tons, a year-on-year decrease of 2.020 million tons; Shandong purchased 5.709 million tons, a year-on-year decrease of 377,000 tons; Henan purchased 7.729 million tons, a year-on-year decrease of 3.363 million tons; Hubei purchased 1.216 million tons, an increase of 149,000 tons.

On August 5, the state continued to conduct bidding transactions for the lowest purchase price of wheat, national temporary storage wheat, and trans-provincial transfer of wheat. The total volume was 1,046,249 tons, the transaction was 214,342 tons, the transaction rate was 20.48%, and the average transaction price was 2,346 yuan/ton.

3. Outlook

SunSirs wheat analysts believe that the average wheat transaction price of the State Reserve has risen slightly, downstream flour companies have just continued to demand, and corn prices have continued to be high. Supported by many favorable conditions, domestic wheat market prices are expected to continue to be strong in the short term.

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