State reserve wheat auction opens the new year with sluggish sales

On January 5, 2016, the state reserve wheat auction ushered in its first auction of the new year. As the state reserve wheat auction policy had not been adjusted, the state reserve wheat continued to see sluggish sales due to its price disadvantage. On January 5, the state reserve wheat auction planned to sell 1.1541 million tons, with actual sales of 12,300 tons, an average transaction price of 2,520 yuan/ton, and an average transaction rate of 1.06%, of which Jiangsu region sold 10,138 tons, Anhui region sold 1,000 tons, and Henan region sold 1,139 tons.

Given the small volume circulating in the domestic wheat market and the fact that the policy price is higher than the market price, the policy has played a certain supporting role in the "volume and price" of the domestic wheat market. It is expected that as phased bullish and bearish factors gradually reach a stalemate, the wheat market price as a whole will remain in a range-bound pattern, and the overall domestic wheat market price may operate within the policy price range formed by the minimum purchase price and the floor price of the state reserve wheat auction.