Wheat prices keep rising: sell while it looks good, or store the grain and wait?
Actually, for today's farmers, few people bother to quibble over a few cents of price fluctuation anymore, because it simply isn't worth it. This is also a problem inherent in China's current smallholder farming system. Each family has just a few mu of land, and the total harvest is only a few thousand jin of wheat, so a fluctuation of a few cents can hardly change their income at all. What they think about more is not agonizing over when to sell, but selling early so they can go out to work.
But we still have to come back to the question. This year's wheat price increase is indeed not small, but since mid-June, wheat prices have shown signs of stabilizing in the market, and now they have basically stabilized. When it comes to grain, we need to understand one thing: this is a major matter concerning the national economy and people's livelihood, and no problems are allowed to arise. In other words, the state does not allow grain prices to fluctuate by large margins, and all fluctuations remain within the scope of the law of market value.
For this year, the wheat production reduction is not small, so for farmers this year, it can be said that prices rose without increasing income. Many farmers say that in previous years wheat could basically reach 1000 jin per mu, while this year reaching 700-800 jin is already considered good, and this year's wheat price rose from 1.15 yuan per jin at harvest time to 1.25 yuan per jin, which is not much of an increase either, so by comparison it is still not as good as last year.
Here Science Agriculture wants to remind everyone that even though there has been some production reduction this year and prices have risen somewhat, judging by the current market conditions, there is limited room for prices to rise in the future. Looking at this year's market conditions, the increase has already been relatively large, thanks on the one hand to the wheat production reduction and on the other hand to the factor of grain reserves suspending auctions.
But if grain prices continue to rise in the future, I'm afraid auctions will continue to open. Today China's grain reserves still have 76 million tons in stock, which can easily cope with this year's wheat production reduction, and wheat market prices from Russia and the United States abroad are far lower than China's, so if domestic wheat prices rise too high, large numbers of grain processing enterprises will turn to purchasing imported wheat.