According to the Commodity Market Analysis System of SunSirs, the overall price of domestic wheat market continued to rise in August. On August 1st, the average price was 2,804.00 RMB/ton, and on August 31st, the average price was 2,986.00 RMB/ton, an increase of 6.49% during the month.
In August, typhoons caused frequent high temperature and rainy weather in China, coupled with a strong mentality of grain storage and trade entities to be reluctant to sell and support prices. The supply of wheat in the market continued to be tight, and downstream flour processing enterprises continued to raise prices to replenish their inventory, driving the overall price of domestic wheat market to slightly strengthen.
In August, due to the impact of heavy rainfall caused by the typhoon, the overall purchase and sales of domestic grain trade were limited. The weakening of expectations for high autumn grain yields has driven the prices of corn in Linchi to continue to rise. The quality differentiation of wheat is relatively serious, and the mentality of grain storage trade entities to be reluctant to sell and support prices is becoming stronger. Supported by factors such as price hikes and restocking by flour mills, the domestic wheat market prices have rebounded comprehensively this week.
In late August, the overall purchasing process of summer grain in the main production areas has exceeded half, and the high-quality and tradable grain sources in the wheat market are gradually decreasing. In addition, due to factors such as reduced wheat production, polarized quality, and variable weather in some production areas this year, grain storage and trade entities continue to have a positive outlook on the future wheat market prices, with a strong overall reluctance to sell and a strong attitude towards price. In addition, the weather is turning cold, and the demand for terminal flour is about to improve. Flour processing enterprises are stocking up ahead of schedule, Manufacturers' price hikes and restocking have driven the overall upward trend in the domestic wheat market prices.
As of August 15th, various grain enterprises in the main production areas have purchased 55.47 million tons of summer grain, with a progress of over 80%. Among them, 50.34 million tons of wheat were purchased, an increase of 2.49 million tons year-on-year.
The wheat analysts of the business agency believe that: supported by many favorable conditions, the domestic wheat market price continued to run strongly in August, and the weather gradually turned cool in September. In addition, with the coming of the Mid-Autumn Festival, the terminal flour demand will gradually improve, the flour enterprises' willingness to replenish the stock will be stronger as a whole, and the grain storage trade main body's reluctance to sell and maintain the price will remain unchanged. It is expected that the domestic wheat market price will continue to run stably, moderately and strongly in September.
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