The rise in wheat prices this year is reasonable and needs to be treated rationally.
Since the wheat harvest so far this year, the price of wheat has indeed risen a lot. From the perspective of increasing farmers' income, it is also natural for the price of wheat to rise, but we still have to look at this issue from the perspective of the market. To sum up, wheat market supply is relatively tight this year, and wheat prices have recently stopped rising and stabilized.
Wheat, as the main food crop in China, is related to the economic income of farmers. from the comparison of farmers' labor pay and income, it is obvious that the grain price is not proportional to the planting input. In recent years, the cost of agricultural materials is getting higher and higher, especially chemical fertilizers, and the price is as high as 50%. However, in terms of grain prices in recent years, the increase is obviously out of proportion to agricultural materials. Even some grain prices have fallen.
The rise in wheat prices this year also has little to do with the purpose of increasing farmers' income, that is, to maintain the trend of income unchanged at best. Much of this year's wheat rally is driven by a shortage of high-quality food in the market, affected by freezing damage in winter and rainy weather during the harvest. Wheat production has been particularly reduced this year, and to make matters worse, the quality of wheat has also plummeted.
Affected by the above factors, the price also rose sharply after the wheat harvest. However, as a staple grain, the market price of wheat cannot rise all the time, not to mention that the price of wheat in China is much higher than that of international wheat. In mid-June, domestic wheat prices stabilized as a whole.
Recently, the temperature in the main wheat producing areas in China is getting higher and higher, coupled with the increase in rainfall in some areas, it is more difficult for farmers to store grain, the enthusiasm of farmers to sell grain has increased, and the supply of grain in the market is relatively adequate. This year, the purchase standard of wheat support market is more stringent, in Henan, Anhui, Jiangsu and other major wheat producing areas for wheat seed emetic content exceeding the standard of wheat will be directly rejected. The above reasons also directly hindered the further rise of wheat prices.
However, farmers need not worry too much. There is still room for wheat to rise this year. After all, there is relatively little high-quality food in the market this year, and there is a strong demand for flour processing enterprises. The Mid-Autumn Festival and National Day are coming in September and October. Wheat acquisition will also be more active for flour processing enterprises. Maybe wheat will take a turn for the better in August.
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