SunSirs: China Domestic Wheat Prices Fluctuated High and Moved forward in September

According to the Commodity Market Analysis System of SunSirs, the overall domestic wheat market price fluctuated and moved forward in September. On September 1st, the average price was 2,996.00 RMB/ton, and on September 28th, the average price was 3,016.00.00 RMB/ton, an increase of 0.67% within the month.

In September, after the wheat price rose to a high level, the willingness of grain trading entities to sell grain increased. In addition, new season corn is about to enter the market, and some trading entities are vacating their warehouses. The available grain sources in the domestic wheat market have increased. After the wheat inventory of downstream flour enterprises has been effectively replenished, the purchase price has been slightly reduced, and the domestic wheat market price has risen and slightly decreased.

Since the middle of September, the wheat inventory of enterprises has declined. In addition to the upcoming Mid-Autumn Festival, the demand for flour has continued to rise. Downstream enterprises have started to raise prices and replenish stocks again, driving the domestic wheat market to operate with strong price shocks. In late September, with the end of enterprise stocking and the continuous decline in corn prices in Linchi, the intention of grain storage trading entities to monetize increased. At the same time, China National Grain Reserves and local wheat reserves will gradually auction out, leading to a slowdown in downstream demand and an increase in wheat market supply. The overall price of domestic wheat market has slightly adjusted, supported by the decreasing supply of high-quality and tradable grain sources in the domestic wheat market, and the overall price of domestic wheat market has stabilized at a high level.

SunSirs wheat analysts believe that as the price of corn in Linchi continues to decline, the substitution effect of wheat for feed gradually weakens. After the weather turns cold, the demand for terminal flour has rebounded, and there is a decreasing supply of high-quality grain available for circulation in China. The long short game predicts that the domestic wheat market price will continue to consolidate at a high level in October.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.