Wheat prices are gradually stabilizing and rising at a slower rate. Where will wheat prices be set this year?

Friends who are concerned about developing agriculture through science should know that I am relatively optimistic about the wheat market this year. Although I am optimistic, I do not think it will rise blindly. Judging from the current market situation, basically 1.4 yuan per jin may be the peak. The reason why this price is mentioned, but also because this price is a level.

For this year's wheat market, I am afraid to surprise many people. Due to the continued reduction in the purchase price of wheat to support the market this year, many three farmers are bearish on the wheat market. however, at the time of wheat harvest, the continuous overcast and rain in large areas of the main wheat producing areas across the country, coupled with the freezing damage of winter wheat, has led to not only a reduction in wheat production but also a reduction in wheat quality this year!

In the wheat market, which was stimulated by this, the price rose sharply after the wheat sickle was opened. On the whole, the market price of wheat this year will be higher than that of last year, but the increase will not be too great. After all, as a staple grain crop in China, its market position needs to be stable. The volatility of the price will not be too great.

At present, the wheat market price is basically around 1.25 yuan per jin, which is 10 cents higher than the market price. It should be said that this price is still good. However, under the condition of market economy, the price is still determined by supply and demand. Although the output of wheat in our country is large, the demand is also huge. With the overall reduction in wheat production this year, the relationship between supply and demand in the market has also changed. The tightening of domestic wheat supply and demand is also a major factor supporting the rise in wheat prices.

However, I have also mentioned earlier, the increase is limited! On the one hand, this limited reason comes from the stabilizing effect of temporary storage on market grain prices. As an invisible hand in the market, there is no doubt about the ability to adjust wheat prices. the announcement of temporary storage to suspend wheat auction in early June quickly led to a rise in wheat prices, indicating the position of temporary storage in the market.

Another reason is the impact of low-price and high-quality wheat from abroad. A reality we have to face is that the price of foreign wheat shipped to our ports is still lower than that of Chinese wheat, and the quality of imported wheat is better than that of Chinese wheat. More suitable for bread processing.

To sum up, I think that although the price of wheat has the potential to continue to rise this year, the room for increase is limited. I am afraid that the price of 1.4 yuan per jin will be more optimistic.

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