The decline in wheat prices has made traders and milling enterprises miserable.

"at the end of September, the purchase price of second-class wheat listed in many grain depots in Puyang was 1.17-1.2 yuan / jin, which has been reduced to 1.12 yuan / jin at present." Cui Ruibing, a wheat trader in Puyang, Henan Province, told the reporter that in October, although there are no major negative factors in the market and the wheat market has also entered the traditional peak demand season, the demand for wheat has not improved, coupled with the sharp drop in corn prices, and the purchase price of wheat has also gone down all the way.

Wheat prices are getting lower and lower day by day, which makes many wheat traders and mills anxious. The person in charge of a flour enterprise in Cangzhou, Shandong Province told the reporter that in the face of the backlog of flour and wheat bran and the wheat raw materials piled up in the warehouse, she could not sleep all night, because she did not know which day wheat prices would stop falling and stabilized, so she had to harvest less or stop harvesting wheat in a panic, and desperately pressed down the stock.

According to Cui Ruibing, at present, the price of new corn in Henan, Shandong, Hebei and other places has generally dropped to less than 0.9 yuan per jin, and compared with the price of corn, the price of wheat is obviously on the high side. Due to the strong price linkage between the two, the market expects a wave of decline in wheat prices, and spot purchasing demand is extremely weak.

At the same time, in order to avoid the risk of falling prices, wheat traders have sold down prices one after another, resulting in a sharp decline in wheat prices in the short term.

The reporter learned in the interview that the rapid decline in spot wheat prices has a lot to do with the suspension of government purchases in the market, and it also has a lot to do with Wudeli, Yihai, Cofco and other large flour enterprises taking the lead in substantially reducing the purchase price of wheat. Due to the shortage of storage capacity in various producing areas this year, the amount of wheat purchased by the government in supporting the market has not increased, and the quantity of wheat available for circulation in the market is on the high side. After the end of the purchase by the government, the supply pressure soon appeared. In order to avoid the risk of falling prices, the above-mentioned large milling enterprises continued to reduce the purchase price of wheat in the short term. Among them, the purchase price of common wheat to the factory has been reduced from 1.18-1.22 yuan / jin at the end of September to 1.09-1.13 yuan / jin. Subsequently, small and medium-sized milling enterprises followed up and lowered the purchase price, and some milling enterprises even stopped harvesting and sold part of the raw material wheat in stock. Under the joint action of these factors, there has been a "high-altitude diving" market in wheat prices.

Feng Wei, a wheat processor in Xinxiang, Henan Province, believes that the flour industry is in a difficult period, which is mainly manifested by a large gap in the funding of milling enterprises. Product sales are not smooth, and the rapid decline in wheat prices has devalued the stock of raw materials. It is estimated that it will be difficult for the flour industry to extricate itself from the predicament before the big economic environment fundamentally improves.

It is also understood that in order to protect the interests of farmers and prevent "cheap grain from harming farmers", the government will continue to implement the minimum 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 lowest purchase price of wheat (third-class) produced in 2016 is 118 yuan per 50 kg, the same as in 2015, in order to stabilize grain production and promote the healthy development of the grain industry.