Domestic wheat market set to return to a policy-driven market, industry views interpreted

Currently, less than one month remains until the end of the wheat minimum purchase price policy in the main producing areas. With the market purchase price of new wheat below the minimum purchase price, the volume of wheat purchased under the minimum purchase price policy will still increase steadily, and the quantity of low-priced grain available for circulation will further decrease. Later, as the execution period of the wheat minimum purchase price policy ends, the supply and demand pattern of grain available for circulation in the market will become the key factor affecting the trend of wheat prices. Because the relatively large stock of state temporary reserve wheat is difficult to supply effectively to the market due to its high price, as it becomes harder to make large-scale purchases of grain from the circulation market in the future, the domestic wheat market will return to a "policy-driven market." Since the market price is below the policy price, this may prompt wheat prices to gradually move closer to the policy price.