Price trend

According to the monitoring of SunSirs, the domestic wheat market price continued to decline in February. The average price was 3,126.00 RMB/ton on February 1 and 3,064.00 RMB/ton on February 28, down 1.98% in the month.

Analysis review

In February, the national storage policy wheat continued to leave the warehouse, the main body of grain storage trade increased the intention to cash out, the domestic wheat market circulation continued to rise, the demand for flour continued to be more sluggish after the festival, the wheat procurement of downstream flour enterprises slowed down overall, and the domestic wheat market price was under pressure and weaker.

Affected by the continuous downturn in the demand for terminal flour, the overall volume and price of policy wheat auctions fell in the middle and late February. At the same time, the grain trading entities continued to cash out of the warehouse. The supply pressure on the domestic wheat market continued to increase. Under the pressure of strong market supply and weak demand, the price of the domestic wheat market fell back over in February.

In February, the domestic corn price continued to fall, falling by 0.91% in the month as a whole. The continuous decline of the domestic corn price also played a certain role in suppressing the domestic wheat market price.

Market outlook

The wheat analyst of SunSirs believes that under the pressure of many negative factors in the short term, it is expected that the domestic wheat market price will still have some room to fall in March. Supported by the relatively high cost of grain storage, the domestic wheat market will have limited space to continue to fall in the future.

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