The wheat market is more likely to maintain stability in August and prices are expected to start to rise in September.
August and September can be said to be a month that spans two solar terms. August is actually a very hot month, but the weather is basically getting cooler in September. Although the wheat market seems to have little to do with this seasonal change, in fact, this seasonal change also has a great impact on prices.
In August, the weather is hot, and the market demand is not as good as the cool September. This temperature change will stimulate the demand for wheat in the market.
First of all, for farmers, the weather is too hot, grain storage is a major problem, farmers want to sell, the psychology is more anxious. Secondly, from the point of view of flour processing plants, limited by storage conditions, they do not dare to buy too much grain rashly to avoid storage deterioration and pest problems.
Third, due to the low price and high quality requirements of grain storage, farmers are not active in selling. As a result, the current grain market is relatively deserted.
Based on the above information, Scientific Xingnong believes that the market pattern in August will continue the market pattern in July, but the general probability will be slightly better.
The key reason for the better is the relaxation of the purchase criteria for over-standard wheat, which is quite a stimulus to the market. First of all, the acquisition of grain reserves will also be stepped up. It is said that at present, the progress of only 60% of the acquisition of grain reserves is much slower than in previous years. Secondly, it also solves the difficulty for farmers to sell grain and invigorates the market.
However, September, as the last month of temporary reserve acquisition, the effective support of the market is still very good, so Science Xingnong is also more optimistic about this month.
First of all, facing the double Mid-Autumn Festival in September, the demand for flour has also increased.
Second, when the weather turns cooler, the operating rate of flour enterprises will gradually rise, which will speed up the acquisition of wheat and form a support for the market.
Third, domestic colleges and universities have generally entered the school season, flour procurement has entered the peak period.
To sum up, August and September are months to look forward to, and there are still a lot of market benefits, but what is more worth looking forward to is September, during the so-called Golden Nine and Silver Ten months. I also hope that the broad masses of farmers can really enjoy the joy of a bumper harvest.
Here is science to promote agriculture, welcome to add attention, with you to grow knowledge.
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