Wheat prices may remain fluctuating around the floor purchase price for an extended period
Wheat prices may remain fluctuating around the floor purchase price for an extended period Last week, new wheat began to come onto the market, and Jiangsu, Anhui and Hubei launched floor purchase. The old wheat market saw light buying and selling, and wheat prices continued to run weakly; flour prices in production areas were stable, while bran prices were stable with a slight decline. At present, domestic policy grain source inventories are high, and insufficient demand from grain-using enterprises plus too-high auction reserve prices have led to slow digestion of policy inventories, making regional warehouse capacity conflicts prominent. This will directly affect the floor purchase intensity for wheat in major production areas, greatly reducing the squeezing effect on circulating grain sources in the wheat market, and the price-lifting effect of policy purchases on wheat prices may be significantly lengthened by the purchase cycle, causing wheat prices to run around the floor purchase price for a relatively long time.
US soybean futures prices are expected to continue fluctuating downward Last week, the port distribution price of imported soybeans continued to fall. Affected by the decline in international soybean prices, the cost of imported soybeans decreased, while demand for downstream products such as soybean meal and soybean oil did not recover noticeably, so the port distribution price of imported soybeans continued weak. The aftereffects of a global soybean bumper crop remain, US soybean planting progress is stable, and El Nino weather is also favorable for US soybean growth, making weather speculation difficult for the time being. The recent sharp rise in the US dollar exchange rate has also put downward pressure on CBOT soybean futures prices, and CBOT soybean futures prices are expected to continue fluctuating downward.