The minimum purchase price of wheat remains unchanged in 2016 and the price of wheat is expected to stop falling.
A few days ago, the reporter learned from the National Development and Reform Commission that in order to protect the interests of farmers and prevent "cheap grain from harming farmers", the government will continue to implement the lowest purchase price policy in major wheat producing areas in 2016. Taking into account the cost of grain production, market supply and demand, domestic and foreign market prices and the development of the grain industry, with the approval of the State Council, the minimum purchase price of wheat (third-class) produced in 2016 is 118 yuan per 50 kg, maintaining the 2015 level unchanged, in order to stabilize grain production and promote the healthy development of the grain industry.
"the wheat harvest and storage policy for next year will be announced too timely, which will stabilize market prices and increase farmers' enthusiasm for growing grain." Wang Yingzhong, business manager of the first Grain Depot in Jining, Shandong Province, told reporters that at present, the domestic wheat producing areas are in the sowing season, and the price drop has left many farmers in a wait-and-see state. Because wheat prices have fallen too fast, some farmers have come up with the idea of planting less wheat.
Wang Yingzhong said: before the announcement of the policy, the market generally expected that the minimum purchase price of wheat next year would be reduced by 0.1 yuan / jin. After October, the spot market price in the main wheat producing areas in China fell by 0.07 yuan / jin to 0.1 yuan / jin within a week. This makes wheat traders, milling enterprises, and grain farmers feel that there is no bottom in their hearts, and it is difficult to stop the decline in wheat market prices. It is estimated that after the announcement of the policy, the price of the domestic wheat market will soon stop falling and rebound, the panic in the market will weaken, and the enthusiasm of farmers to grow grain will also be increased.
According to the reporter's understanding, at present, the autumn crops in the main wheat producing areas in China have been basically harvested, the wheat sowing work is being carried out in an all-round way, and the sown area is expected to be stable. At the same time, as the price of high-quality wheat is much higher than that of ordinary wheat in the past two years, the sown area of high-quality wheat is estimated to have increased more this year.
"the current out-of-stock price of Henan Xinmai 26 high-quality wheat is 1.38-1.42 yuan per jin, while that of ordinary wheat is about 1.15 yuan per catty. The difference between the two prices is very far, coupled with the fact that the domestic supply of high-quality wheat has been relatively tight. It is expected that the price of high-quality wheat will remain high next year, and this year many farmers have expanded the sown area of high-quality wheat." According to Liu Zhang, a distributor of agricultural materials in Weihui, Henan, the rapid decline in the prices of corn and common wheat basically did not have much impact on high-quality wheat. After the wheat collection and storage policy was announced, as the overall market price of wheat stabilized, the price of high-quality wheat is likely to rise slightly, and farmers are naturally willing to grow some high-quality wheat.
Wang Yingzhong told reporters that up to now, the sown area of wheat in Shandong Province has accounted for about 10% of the total area, and one of the outstanding characteristics is that the area of high-quality wheat has increased a lot, among which Xinmai 26, a high-quality wheat variety, is very popular with farmers.
Luo Jiahui, a wheat trader in Jingzhou, Hubei Province, told reporters that he did not panic after the policy was announced, and that he was in no hurry to sell more than 500 tons of wheat until the price was right. "before that, it was hard to watch wheat prices go down all the way."
However, some market experts believe that due to the downturn in market demand and the excessive decline in the prices of agricultural products such as corn, although the announcement of the wheat collection and storage policy has created conditions for the stabilization of wheat prices and is conducive to the rebound of wheat prices, it is difficult for wheat prices to rise sharply in the short term, and the long-term trend of market prices mainly depends on supply and demand in the later stage.
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