August and September can be said to be months that span two solar terms. In August, it is actually still a very hot month, but once September arrives, the weather gradually turns cooler. And although the wheat market seems to have little to do with this kind of seasonal change, in reality this seasonal change has a very large impact on prices.

In August, the weather is hot, and market demand is still not as strong as in the cooler September. This change in temperature has a relatively large effect on stimulating market demand for wheat.

First of all, from the perspective of farmers, when the weather is too hot, grain storage is a major problem, and farmers are eager to sell, feeling rather anxious. Secondly, from the perspective of flour processing plants, limited by storage conditions, they do not dare to rashly purchase too much grain, for fear of spoilage during storage as well as pest problems.

Thirdly, in terms of grain storage, because the price level is relatively low and quality requirements are high, farmers are not active in selling. Therefore, this has created the current relatively sluggish situation in the grain market.

Based on the above information, Science Xingnong believes that the market pattern in August will continue the market pattern of July, though with a high probability it will be slightly better.

The key reason for it being slightly better is the relaxation of purchasing standards for wheat exceeding limits, which is a considerable stimulus to the market. First, grain storage purchasing will also be stepped up. It is said that at present only 60% of the grain storage purchasing task has been completed, much slower than in previous years. Second, it has also solved the difficulty farmers face in selling grain and revitalized the market.

However, as for September, as the last month of temporary reserve purchasing, there are still many effective supporting positive factors in the market, so Science Xingnong is also more optimistic about this month.

First of all, September faces the Mid-Autumn Festival and National Day holidays, which also boosts demand for flour.

Secondly, as the weather turns cooler, the operating rate of flour enterprises will gradually rise, and wheat purchasing will also speed up, forming support for the market.

Thirdly, domestic universities generally enter the school-opening season, and flour procurement enters a peak period.

In summary, both August and September are months worth looking forward to, and there are still quite a few positive factors in the market. However, what is more worth looking forward to is September. In the so-called golden September and silver October months, it is also hoped that the broad masses of farmers can truly enjoy the joy of a bumper harvest.

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