Affected by the weather, wheat production has been reduced in many areas this year, but there is limited room for wheat prices to rise.
At present, the new wheat in 2018 is on the market, but the price is not optimistic. This year's wheat is really hard to come by. After the wheat was sown, the wheat in many areas was in drought. The late spring cold after the Spring Festival caused freezing damage to the wheat, but it was not easy to look forward to the harvest season, but there was a period of continuous rain. As a result, a lot of wheat sprouted before entering the house.
For this year's wheat price drop, science believes that there are several reasons.
New wheat is concentrated on the market
During the current period of concentrated listing of new wheat, many farmers are in a hurry to sell to make time to go out to work, which is also a thing, and this happens to cater to the psychology of traders, taking advantage of the opportunity to lower the price of wheat, the natural price will not rise. You can pay close attention to the fact that the price of new wheat is depressed every year, which can be regarded as an old practice.
The quality of wheat declined
Another major factor contributing to the decline in wheat prices this year is the decline in wheat quality mentioned above. during this year's wheat harvest, several major wheat producing areas are almost covered by overcast and rainy weather. Hubei, Henan, Anhui, Shandong, Jiangsu and Hebei have all suffered Rain Water weather to varying degrees, which directly leads to a decline in wheat quality. however, the quality of wheat supplied by grain storage in the market is excellent. Naturally, the price of wheat newly listed this year has also been suppressed to a certain extent.
The minimum protection price is reduced.
Everyone must have expected this. In January this year, the news was confirmed. Not only wheat, but also the minimum protective price of rice has been lowered, but everyone is lucky. After all, the minimum protective price has not yet been cancelled. Otherwise, the price may fall by much this year.
The above reasons should be the main reasons for the decline in wheat prices, but the above are only my own views, I hope they can be helpful to you.
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