Wheat production has been reduced by weather in many regions this year, but there is limited room for price increases.

The new 2018 wheat crop has now reached the market, but the opening prices are not encouraging. This year's wheat has truly been hard-won: after sowing, wheat in many regions suffered drought, and the cold spells after the Spring Festival caused frost damage to the wheat; then, just when the harvest season was finally in sight, a stretch of overcast and rainy weather arrived, causing no small amount of wheat to sprout before it even made it home.

As for this year's wheat, ScienceInterest believes the price decline is due to the following reasons.

Concentrated market arrival of new wheat

During the current period when new wheat is arriving on the market in concentrated volumes, many farmers are eager to sell so they can free up time to go out to work, which also settles a matter on their minds. This happens to play right into the psychology of traders, who take the opportunity to drive down wheat prices, so naturally the prices will not rise high. You can pay close attention: every year the opening quote for new wheat is lackluster, and this can be considered an old routine.

Decline in wheat quality

Another major factor behind this year's wheat price decline is the drop in wheat quality mentioned above. During this year's wheat harvest, almost all of the major wheat-producing regions were covered by overcast and rainy weather. Hubei, Henan, Anhui, Shandong, Jiangsu, Hebei and others all suffered from rainy weather to varying degrees, which directly led to a decline in wheat quality. However, the wheat supplied by grain reserves on the market is of excellent quality, so naturally the prices of this year's newly marketed wheat have also been suppressed to a certain extent.

Minimum protective price lowered

You have probably all anticipated this point. In January this year, the news was already confirmed: not only wheat but also the minimum protective price for rice was lowered. Still, everyone can consider themselves lucky, since the minimum protective price has not been abolished. Otherwise, there is no telling how much prices might have fallen this year.

The reasons above should be the main ones behind the decline in wheat prices, but the above is also just a personal view of mine, and I hope it can be of some help to you.