SunSirs: China Domestic Wheat Prices Fluctuated and Declined in December 2023

According to the Commodity Market Analysis System of SunSirs, the overall price of domestic wheat market fluctuated and declined in December. On December 1st, the average price was 2,954.00 RMB/ton, and on December 29th, the average price was 2,880.00 RMB/ton, a decrease of 2.51% within the month.

Entering December, downstream flour demand continued to be sluggish, and companies were cautious in purchasing. The domestic wheat market remained relatively loose in terms of purchase and sales, and the continued weakness in wheat prices led to grain trading entities being reluctant to sell and raising prices. In addition, rain and snow weather affected wheat transportation, resulting in a decrease in the amount of wheat received by companies. In order to stimulate the arrival of goods, some companies slightly raised the purchase price of wheat, driving the overall price of domestic wheat market to stop falling and rebound before moving forward with slight fluctuations.

As the weather in the main production areas turns sunny and transportation conditions gradually improve, the domestic wheat market circulation has increased. In addition, the demand for terminal flour remains weak, and enterprises are cautious in replenishing inventory. After completing inventory replenishment, they continue to lower the wheat purchase price. At the same time, factors such as the comprehensive decline in corn prices in Linchi and the restart of wheat auctions with the lowest purchase price have suppressed the bearish outlook of grain trading entities, The overall pressure on domestic wheat market prices has led to a comprehensive decline.

The wheat analyst from SunSirs believes that the current domestic wheat market supply is relatively loose, and terminal flour enterprises are cautious in purchasing and selling. Policy wheat auctions have restarted, and downstream trading entities are bearish on the future market. The price of corn in Linchi has fallen comprehensively, and the intention of grain storage trading entities to sell out has increased. Many bearish factors have suppressed the situation, and it is expected that the domestic wheat market price will continue to operate weakly under pressure in January 2024.

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