2019 Wheat prices: demand boosting effect weakens the impact of policy adjustment

Wheat is one of the three major cereals widely planted all over the world, almost all of them are used as food, and only a small part of them are used as feed. What is the yield of wheat per mu under normal circumstances? How much is the price per jin in 2019?

How much is the price of wheat per jin in 2019?

1. According to the Tuliu.com-Fruit and vegetable Market Channel, the current opening price of wheat in Henan is 2420 yuan, the latest 2421 yuan, up 2 yuan, the highest is 2435 yuan, the lowest is 2420 yuan, and the closing price was 2427 yuan yesterday.

2. The average entry price of medium white wheat in Chongqing in 2018 is 2530 yuan / ton, and that of Henan and Anhui mixed wheat in Sichuan is 2540 yuan / ton.

3. The delivery price of the third-grade white wheat in Fengtai area of Anhui Province in 2018 is 2380 yuan / ton, the first-grade white wheat in Woyang area is 2360 yuan / ton, and the second-grade red wheat is 2240 yuan / ton in 2018.

The boost effect of terminal demand is weakened.

According to statistics, since 2018, the total amount of wheat stored by the state has been 55.434531 million tons, and the trading volume has been 6.303218 million tons, down 1.065168 million tons from the same period last year. As of late October, the remaining stock of wheat (including wheat produced in 2018) was 75.54 million tons, down 5.46 million tons from the same period last year, of which the stock in Jiangsu, Anhui and Henan was more than 66 million tons, accounting for 87 percent.

Under the comprehensive influence of strict domestic food safety requirements, slow growth of flour production and uneven wheat quality, the purchasing demand of flour plus L enterprises has limited boosting effect on wheat price. Although the weekly input of the national temporary storage wheat is high, the trading volume is not high, and the regional transaction differentiation is obvious, which reflects the structural contradiction of the domestic wheat market to a certain extent.

Policy adjustment affects supply change

It is expected that the later domestic policy adjustment will directly affect the trend of wheat prices, especially the national temporary storage wheat auction policy. Due to the mismatch between supply and demand, the purchase and sale of wheat between quality will continue to differentiate, and the price difference between high-quality wheat and poor-quality wheat will remain high.

As the demand of the domestic flour market is not prosperous in the peak season in recent years, and the holiday boost effect is weakened, under the condition that the wheat supply in the circulation market is sufficient and the national temporary storage wheat keeps a high weekly input, the domestic wheat price fluctuates in a narrow range around the purchasing cost of national temporary wheat storage, which may make it difficult to digest the increase in inventory cost through price fluctuation. It is suggested that grain holders should reduce the expectation of psychological price and arrange the sales plan reasonably according to the quality and quantity of wheat in stock.