1. China's wheat price trend

According to SunSirs monitoring, the domestic wheat market prices rose slightly last week. The average price at the beginning of the week was RMB 2,328.00/ton, and the average price at the weekend was RMB 2,348.00/ton, an increase of 0.86%.

2. Market analysis

In late July, the supply and demand game in the domestic wheat market has intensified. The main body of grain stock trade is generally optimistic that the wheat price will decrease in the future market. The auction transaction of the State Reserve continues to be sluggish. In addition, frequent rainfall has caused the overall shortage of wheat transportation. The domestic wheat market supply The volume declined slightly, and some companies raised their purchase prices slightly to drive the domestic wheat market prices to rebound slightly this week. At the same time, the scope of purchases increased again, which further supported the domestic new wheat prices.

As of July 10, the main wheat producing areas had purchased a total of 32.073 million tons of wheat, a year-on-year decrease of 2.166 million tons. Among them: Hebei purchased 2.48 million tons, a year-on-year decrease of 74,000 tons; Jiangsu purchased 8.348 million tons, a year-on-year decrease of 80,000 tons; Anhui purchased 4.54 million tons, a year-on-year decrease of 1.604 million; Shandong purchased 4.841 million tons, a year-on-year decrease of 412,000 tons; Henan purchased 6.952 million tons, a year-on-year decrease of 645,000 tons; Hubei purchased 1.168 million tons, an increase of 142,000 tons.

On July 15, the state continued to conduct bidding transactions for the lowest purchase price wheat, national temporary storage wheat, and cross-provincial transfer of wheat. The total amount put in was 1.04298 million tons, the transaction was 61,110 tons, and the transaction rate was 5.85%.

3. Outlook

SunSirs wheat analysts believe that: on the whole, domestic flour demand is still relatively weak. The new season's wheat harvest is good, and the overall supply of the wheat market in the future is sufficient. In addition, the state reserve of aging grains will continue to be supplied to the market. In the short term, reluctance to sell will support wheat prices. Limited, the domestic wheat market price will continue to be mainly affected by the entrusted market and the State Reserve auction policy.

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