The supply and demand pattern of wheat circulation market will be relaxed gradually.

At present, the domestic wheat market as a whole shows a phased trend of "supply, reduction and demand increase". Wheat prices are rising steadily, but the year-on-year decline is still obvious. Wheat imports continued unabated, and the price gap between internal and external prices widened. It is expected that with the gradual recovery of wheat prices, the supply and demand pattern of the circulation market will gradually ease.

Based on the fact that the domestic wheat price has stepped into a phased rising pattern, it is suggested that flour processing enterprises should increase grain procurement efforts in advance and appropriately increase inventory to ensure start-up and reduce the cost of raw materials; grain holders should seize the opportunity of periodic pick-up of wheat prices to ship goods.

The price of wheat dropped significantly compared with the same period last year.

After digesting the grain source in the circulation market, the phenomenon of wheat price upside down between the northern wheat region and the southern wheat region is obviously alleviated, but because the price difference is small, considering the circulation cost, it is difficult to circulate across regions on a large scale. Although the overall price of the domestic wheat market rebounded, compared with the same period last year, the decline is still more obvious, the price is not attractive to both buyers and sellers, and the depressed demand restricts the purchasing and selling activity of the wheat market.

By the end of November, the overall domestic market price of common wheat was 2300-2460 yuan per ton, due to differences in quality and regional supply and demand. Among them, the purchase price of common wheat in Daming area of Handan, Hebei Province is 2460 yuan / ton (bulk density 780g/l, moisture 13%). By contrast, in the same period last year, the import price of common wheat in the northern wheat region was 2500-2580 yuan / ton, of which the entry price of medium common white wheat in Shijiazhuang, Hebei Province was 2580 yuan / ton.

Temporary storage inventory increased greatly compared with the same period last year.

Due to the slow recovery of wheat prices in the circulation market, there is still a certain gap between the national temporary storage wheat auction reserve price and the national temporary storage wheat auction floor price. the turnover of national temporary storage wheat remains in the doldrums, with only sporadic transactions. Henan national temporary storage wheat has been auctioned for 5 weeks in a row, and the current national temporary storage wheat auction floor price has a certain boost to the psychology of the main body of the market.

The huge policy inventory of wheat is difficult to enter the market in the short term because of the high price, which greatly reduces the effective supply capacity of the circulation market, and also becomes the biggest resistance to restrict the trend of wheat price in the later stage. Due to the high surplus stock of wheat stored in the producing countries in 2014, the temporary stored wheat in the producing countries was not put on the market in 2015.