SunSirs: Domestic Wheat Prices Fluctuated and Declined in April

Price trend

According to the commodity market analysis system of SunSirs, the domestic wheat market prices in April fell in shock as a whole. On April 1st, the average price was 2,918.00 RMB/ton, while on April 28th, the average price was 2,848.00 RMB/ton, a decrease of 2.40% during the month.

Analysis review

In April, after the price of domestic wheat dropped significantly, the role of feed substitution gradually strengthened. Feed enterprises began to purchase wheat, and at the same time, enterprises directly under China Storage Grain started to purchase wheat. Under the support of policies and demand, the confidence of domestic wheat market was boosted to a certain extent. Trade subjects were more reluctant to sell at low prices, and wheat market prices rebounded slightly after the overall weakness stabilized.

With the increase of policy wheat supply and the continuous downturn of terminal flour demand, the overall supply of domestic wheat market was relatively sufficient. Under the pressure of market supply, the price of domestic wheat market fell again in mid April.

Since late April, new wheat was about to enter the market in some regions, and the main body of grain storage trade had increased its intention to cash out of the warehouse. With the continued depression of terminal flour demand, downstream flour enterprises became more cautious in purchasing overall. The problem of strong supply and weak demand in the wheat market had intensified, and the domestic wheat market prices was weaker under pressure overall.

Market outlook

The wheat analysts of SunSirs believe that: new wheat is about to enter the market, the main body of grain storage trade will sell to cash out, and the policy wheat will continue to be delivered. In the short term, the problem of strong supply and weak demand in the domestic wheat market is difficult to alleviate. In addition, the continuous decline of the domestic corn price will also suppress the domestic wheat market price to some extent. In May, the wheat market price will continue to be weaker under pressure. At the same time, supported by the bottom support of the purchase price of local reserve warehouses, the overall decline space of the wheat market price is limited.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.