Domestic wheat prices slowly recover, while sales of state temporary reserve wheat decline

Constrained by a reduction in grain sources on the circulation market and the high price of state temporary reserve wheat, which has led to a decline in effective supply capacity, domestic wheat prices as a whole have shown a recovering trend, but the recovery is slow due to weak demand. As of early November, the average purchase price of third-grade wheat in Jiangsu was 2,304 yuan/tonne, with an average ex-warehouse price of 2,380 yuan/tonne; the average purchase price of third-grade mixed wheat in Anhui was 2,118.4 yuan/tonne, with an average ex-warehouse price of 2,165 yuan/tonne. Impacted by the low prices of corn and other feed grains, the prices of by-products of flour processing enterprises in most parts of the country have been declining all the way, and downstream demand for flour and its by-products is relatively weak.

Because the auction reserve price of state temporary reserve wheat is still significantly higher than the market price of new wheat, its overall sales situation is relatively sluggish, and the weekly sales volume has fallen quite notably year on year. At present, because the gap between the price of new wheat on the circulation market and the auction reserve price of state temporary reserve wheat is relatively large, this also means that, absent a substantial cut in the auction reserve price of state temporary reserve wheat in the later period, domestic wheat prices as a whole will still show a steady-to-recovering trend. It is suggested to watch in the later period the adjustment of state temporary reserve wheat policy and the price trends of surrounding agricultural product markets.