Wheat market mechanism will play a further role

New wheat market performance stable

In mid-and late July, reporters in Jiangsu, Henan, Hebei, Shandong and other major wheat producing areas visited grain enterprises found that the phenomenon of common market subjects raising prices to compete for grain sources disappeared in previous years, in many temporary storage wheat purchase warehouse points, grain brokers and traders who came to sell grain orderly queued for weighing, warehousing, settlement. And in the small vendors and grain brokers set up grain collection points, reporters saw farmers selling grain small galloping horse carts constantly coming and going.

Henan Puyang national grain reserve business director Han Jingxuan told reporters, This year's new wheat acquisition of the biggest bright spot is standardized and orderly, Collect good grain more, Purchase price stable.

In order to protect the interests of grain farmers and improve farmers 'enthusiasm for grain cultivation, since 2006, the government has implemented the minimum purchase price policy in the domestic wheat market, and from 2006 to 2014, the government has more or less raised the minimum purchase price of wheat in that year before the new wheat is listed. As the policy supports the trend of higher wheat prices year by year, after many years, the characteristics of "policy market" in domestic wheat market become more and more obvious.

Before the listing of new wheat this year, the lowest wheat purchase price announced by the government was the same as last year, and the law that the purchase price must be raised every time the wheat market was listed was broken, and the bullish psychology of the market was changed. After the listing of new wheat, many market entities hold a wait-and-see attitude, the market once expected to appear "farmers sell grain difficult" phenomenon. At this time, relevant government departments and China Grain Storage Corporation timely started the implementation plan for the purchase of wheat at the lowest price, actively played the role of the main channel of purchase, not only stabilized the market price, but also grasped the surplus grain source in the market to the government in due time and in an appropriate amount.

"In order to achieve orderly acquisition, relevant government departments and China Grain Reserve Corporation and its branches have made arrangements long before the listing of Xinmai, not only strictly screening the subjects participating in the acquisition, but also strictly regulating the transfer, settlement, wheat quality control and final acquisition acceptance of the acquisition funds. Every work of the acquisition warehouse has rules to follow." Han Jingxuan said, Because each entrusted acquisition warehouse point is in accordance with the rules, According to the quality and quantity of acquisition, In previous years after the listing of new wheat market restlessness phenomenon is gone, Each acquisition subject mutual price grab grain source phenomenon is also gone, The whole new wheat market performance is stable.

According to the reporter understands, this year new wheat listed so far, each main body of the market has been keeping cautious psychology into the market, in addition to the company of the grain storage system and its entrusted warehouse point acquisition is more active, other market entities are side acquisition side wait and see, some market entities also sell orders, as in previous years, each main body of the market regardless of the quality of new wheat, catch grain first and then sell phenomenon basically no longer.

What deserves more attention and reflection from the market is that in the wheat purchase in previous years, the most concerned issue in the market is how much wheat has been purchased, how much grain source is valued, and how long the supply to the market can be guaranteed. However, little consideration is given to the quality of the wheat purchased, the possible damage and various impacts of excessive purchase on the market, etc. In addition, some purchasing entities pay for the purchase at a higher price, which makes it difficult for the government-led wheat purchase at the lowest price to be orderly, standardized and appropriate. The goal of effectively regulating the market is naturally difficult.

In this year's acquisition of new wheat, the market pays more attention to the quality and orderly and appropriate acquisition of new wheat, which reduces the impact of policies on the market to a lower level, which is very conducive to the market mechanism to play a role, resulting in many new changes and new situations in the wheat market.

From "Policy City" to "Market City"

"Jinan 17 produced in Shandong has a high water absorption rate. The current purchase price is only about 1.3 yuan/catty. The company is preparing to purchase about 5000 tons for trade." Jiangsu Nanjing grain and oil trader Qiangsheng told reporters, In the government terminated every new wheat listing must raise the price of the game rules, And in the grain storage and other implementation of the wheat minimum price purchase policy market entities better implementation of the policy implementation rules, Wheat market "Policy city" characteristics are not so obvious, Wheat market inter-regional price difference, Common wheat and excellent wheat price difference began to appear again. As a grain and oil trader, the company can make use of capital advantages, information advantages, procurement advantages and so on to do some business for the terminal demand enterprises.

Although the number of government-led wheat purchases has decreased, there is no problem for farmers to sell grain in the market, and the abnormal market phenomenon of strong wheat and weak wheat caused by large amount of storage has also been changed. The reporter found in the interview that the reason why the domestic wheat market in the past "policy city" characteristics are obvious is mainly due to excessive acquisitions under the leadership of the government. Due to excessive purchases, all activities in the market have to revolve around policies. However, after orderly and moderate purchases occurred in the wheat market this year, there are grain sources available for circulation in the market, and there are more channels for enterprises to purchase. In addition, the influence of the "policy market" has weakened. Some market entities also dare to take advantage of market opportunities to make transactions. For example, some traders have already purchased and stockpiled a lot of high-quality wheat by taking advantage of capital advantages. Some traders also cooperate with milling enterprises to acquire and stock common wheat. In this way, the wheat market mechanism will play a further role.

Strong told reporters that after the market mechanism plays a role, market activities will be determined by market rules. Why is the quality of the new wheat purchased this year good? The main reason is that there is no rush to buy, from farmers to small vendors, to traders, until the entrusted acquisition of warehouse points, all attach great importance to quality control.

According to the current market purchase price of main wheat producing areas in China, the purchase price of Jiangsu, Hubei, Anhui and other southern producing areas is relatively low. The purchase price of newly produced wheat in grain depots in most areas is 1.20-1.21 yuan/catty. The purchase price of northern producing areas such as northern Henan, Shandong and Hebei is higher, but the highest price does not exceed the market purchase price announced by the government. The current mainstream market price is 1.21-1.22 yuan/catty, and the wheat market price is stable as a whole.

Yang Qingsheng, general manager of Henan Xuejian Industrial Co., Ltd., told reporters that the wheat market for many years has been continuously improved since the listing of new wheat this year, and the strange phenomenon of wheat and flour price inversion is estimated to disappear soon.

"A few years ago, wheat purchase and sales prices were mainly decided by the government, but flour prices were liberalized and decided by the market, which caused the prices of wheat and flour to rise and fall out of sync. Many times, wheat rose and fell, and the market price transmission mechanism failed." Yang Qingsheng said, In this case, Flour industry appeared survival problems, Now wheat strong weak pattern began to change, For the flour industry is a great good thing, Also conducive to the stable development of wheat industry.

For grain farmers, better quality wheat yields better returns. In the past years, under the background of increasing the minimum purchase price of wheat year by year, farmers are more willing to plant high-yield common wheat, and rarely consider the supply and demand situation of wheat market. At present, after the price of common wheat loses policy support, its long-term weakening trend is obvious, while high-quality wheat is stronger due to insufficient supply and strong demand. At present, the price of high-quality wheat in many producing areas is about 400 yuan/ton higher than that of common wheat. Stimulated by this, farmers will choose to plant more high-quality wheat in the new crop year, which is very conducive to the adjustment of wheat planting structure, will also reduce China's dependence on imported high-quality wheat, and reduce the raw material procurement costs of flour milling enterprises and food enterprises.

"In the past, grain enterprises paid more attention to the purchase of wheat to ensure the supply, simply put, that is,'there is no panic in the hands of food', in fact, only in the quantity of wheat to achieve supply security. However, due to the poor quality of wheat purchased, some wheat may not be able to form an effective grain supply source. In addition, the extensive and single planting of wheat by farmers guided by this purchase mode is ultimately unfavorable to the development of the domestic wheat industry, let alone ensuring China's food security." Shandong Jining grain depot business manager Wang Yingzhong believes that grain enterprises now pay more attention to "quality and safety" when purchasing wheat, that is, pay more attention to wheat quality, pay attention to guiding farmers to adjust planting structure, and pay attention to leaving enough operation space for the market. In this case, the development of domestic wheat industry will enter a benign orbit, and China's grain supply and security will be more guaranteed.

Zhengmai futures market active can be expected

Stimulated by the increasingly active trading of domestic wheat spot market, Zhengmai futures market has gradually attracted investors 'attention since the listing of new wheat. Although the current position and turnover of Zhengmai futures market are still relatively small, it is laying an increasingly active foundation.

Wang Yingzhong told reporters that in the past Zhengmai futures market transactions were very prosperous, but since the wheat market became a "policy market", the upper and lower space of market prices has not been, the weather in the producing areas, the increase or decrease of wheat yield, the size of market demand and so on can not affect the price.

At present, the characteristics of the "policy market" of the wheat market are weakening, coupled with the large fluctuation of the price of domestic spot high-quality wheat market, and the modification of some strong wheat trading systems by Zheng Shang Institute to meet the market demand, the future Zhengmai futures market is active again.

According to the reporter's understanding, Zhengmai Futures Market once guided the emergence of a new planting mode of "futures + orders" in China's main wheat producing areas, and at the same time provided good management, decision-making information and basis for the majority of wheat traders, storage enterprises, milling enterprises, government decision-making departments, etc.

The market expects that with the continuation of orderly wheat collection and storage, the wheat market mechanism will play a further role, the trading of wheat spot market will become increasingly active, and the spot market will also integrate with each other, thus better promoting the development of wheat industry in China.