Where will rice prices go after the wheat harvest? For now, it looks like they basically won't fall

Now that we've reached this point, rather than looking at 2018 rice prices, it's more practical to look at recent rice price levels, since only 5 months of 2018 are left anyway.

Judging by the growth of early rice in the south, it will basically be ready for harvest in about another one or two weeks. This year the state once again lowered the minimum purchase price for paddy rice under the market-support policy. Although market sentiment was pessimistic for a time, looking at the current market situation, paddy rice in the future will show high quality at high prices, and there is basically no room for paddy rice prices to fall.

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For paddy rice processing enterprises, today's paddy rice market can be described as the toughest stage. First, summer has arrived and farmers are quite busy, so they are not active in selling grain; second, as temperatures rise, consumers dare not buy much either. It should be said that this is currently the off-season for consumption. For paddy rice processing enterprises, they also have to lower their operating rates and cut production capacity.

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Therefore, in the market trend that follows, high-quality rice will be even more favored by paddy rice processing enterprises, showing high quality at high prices. As for the current season, last year's old grain has already been almost sold out, and high-quality paddy rice is even harder to find on the market. Therefore, from recent auctions it can be seen that old high-quality grain often carries a relatively high premium. High-quality paddy rice is relatively scarce on the current market, and in areas like Northeast China, it will still be about two and a half months before new grain comes onto the market. Therefore, after getting through these two months of the consumption off-season, the market will see another round of movement.

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On the basis of support from the later auction reserve price, given the recent grain shortage and the arrival of seasonal consumption, it is expected that there will be very limited room for paddy rice to fall in the future market. However, for friends who have storage conditions, if storage is possible, it is recommended to consider selling in autumn. At that time, paddy rice will be at a relatively low supply level, and with rigid market demand, there will naturally be some room for an increase.

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