Wheat prices reach record high Flour producers call for active ordering

After the Chinese New Year, prices of agricultural products have soared. Following the price of soybeans, corn and other major food crops set new historical records, the recent price of wheat also jumped to the highest price in history.

In the face of rising wheat prices, flour dealers took a wait-and-see attitude and continued to be less motivated to stockpile. In order to stabilise the dealers' mindset, flour head producer Wudeli Group sent a letter stating that it predicted that wheat prices would continue to rise and hoped that dealers would see the situation positively and order.

Wheat prices will remain high in the short term

China is the largest producer and consumer of wheat. Data from the National Bureau of Statistics 2021 shows that global wheat production was 776 million tonnes and China's wheat production reached 137 million tonnes. Although China has a high self-sufficiency rate of wheat, the country still imports wheat every year for transferring to fill the shortage.

On March 9, the Ministry of Agriculture and Rural Affairs market warning expert committee released an analysis of the supply and demand situation of China's agricultural products showed that wheat prices rose high and the expected toning down of wheat as a substitute for corn feeding consumption.

Business data show that on March 9, the domestic market price of durum white wheat has soared to 3,200 CNY/ton, a cumulative increase of 10.27% in the last 10 days.

In terms of foreign markets, the Chicagoland CBOT wheat current month continuous futures prices in March 8 hit a record high of $ 13.635 / bushel, March 9 to 10 prices have fallen, but still in the high range.

Shanghai Steel Union agricultural products network wheat analyst Lv Fengyang told the "Securities Daily" reporter, the recent wheat prices have stopped falling and stabilized after a gradual recovery, the main reason is that the market source of grain circulation is still scarce. At this stage, the policy wheat auction continues, the auction price premium than the previous period has been reduced, the market tends to be rational. With the rising temperature, flour terminal demand is further sluggish, flour making enterprises to meet just demand for wheat acquisition.

On February 23, the director of the Central Rural Work Leading Group Office, Minister of Agriculture and Rural Affairs Tang Renjian said at a conference held in 2022 to comprehensively promote rural revitalization priorities: "2021 wheat planting, affected by a rare autumn flood, Shandong, Henan, Hebei, Shaanxi and other places wheat sowed about half a month late. This year's seedling situation is the worst in history, with a low proportion of one or two types of seedlings and a complex and weak summer wheat seedling situation."