Latest rice purchase notice: grain-selling farmers, come and take a look

Shinong Agricultural Machinery Assistant

Baomei has learned that domestic rice prices are generally stable. After National Day, the volume of new-season rice coming to market increased sharply, but compared with market buying and selling in previous years, this year is much quieter, and all purchasing entities are buying in small volumes and cautiously. Everyone is also struggling over whether to sell or not,after all, if they sell, the price is relatively low and returns decline; if they do not sell, they begin to worry that the market may still fall later. So, with the 2018 rice minimum purchase price policy showing a large reduction and the policy being launched late, when to sell grain has become the most critical issue right now.

Of course, Baomei also understands the farmers' predicament very clearly.Costs rise year after year, but returns do not necessarily increase. The saying widely circulating in the market that after a year of hard work, selling a jin of grain is not worth the price of a bottle of water is also a true reflection of farmers' situation. Recently, after the price of central reserve grain was announced in the Heilongjiang production area in Northeast China, people felt even more disheartened, mainly because the price was too low. Below, Baomei has collected and organized reserve grain purchase notices from various places, as well as experts' analysis of the timing for selling grain.

Long-term pressure remains

Recently, the current state of the country's various grain inventories was tallied, and rice inventory has clearly taken the top spot. According to incomplete statistics, as of early October, total wheat inventory was about 77 million tons, rice was more than 100 million tons, and corn was around 88 million tons. In particular, corn transactions in 2018 were very good, already far below the total rice inventory. With such high inventory, in 2019 the state will still make rice a key focus for destocking. How to promote destocking? Only by lowering prices. Although this is not a stopgap measure, it is the most effective method. Therefore, it is not unreasonable that rice mills dare not rashly stockpile grain.

Baomei thinks: what has been described is a true portrayal of the current rice market. It is suggested that large grain growers may appropriately sell part of their rice and first convert part of it into cash. After the state reserve minimum purchase price policy is launched, they can then sell part of their grain sources according to current market conditions. In the long run, there is insufficient momentum for rice prices to rise in the future, so it is best to lock in profits in a timely manner. However, for high-quality rice, because rigid market demand is relatively good, everyone is advised to store it until later for sale, such as around New Year's Day and the Spring Festival. Baomei believes,mainly high-quality rice varieties such as Changlixiang, Daohuaxiang, and Liaoxing.

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