In April 2024, the trend of wheat prices became a hot topic on everyone's dinner table. The market expects wheat prices to fall, but the reality has reversed, and wheat prices have risen instead of falling in some places.
This unexpected turn of events not only caught people off guard, but also made those who invested in wheat feel uneasy. How will this wave of wheat price fluctuations detonate the market?
In the spring of 2024, there is a saying in the market that wheat prices will "fall endlessly". In the face of this pessimistic expectation, the price list on April 8 was a big surprise.
There have been rumors in the media that the price of wheat is going to fall, and in some places the price of wheat has secretly risen a little. This has to be said to be a surprising phenomenon.
They are the big players in the market. In the face of this wave of abnormal wheat prices, they chose to sell at a reduced price, hoping to follow market expectations. But is this strategy really appropriate?
If the demand does not change, such a drop is likely to cause panic in the market and make the supply chain unstable. At this time, everyone is thinking, do these large companies really see the market supply and demand clearly, or are they just blindly following the trend?
The country's grain reserve policy is also very crucial. China Grain Reserves has set the purchase price of wheat for the new season, starting at least 1.3 yuan. Behind this price, in fact, it reveals a kind of expectation and support for agricultural products in the country. The market's reaction to this price has become a litmus test of confidence in the country's policies.
We'll have to talk about corn and wheat. Corn and wheat are like a pair of dancing partners in the agricultural market, and the price of these two goods is quite linked, especially in the feed market. Feed companies usually want wheat to be 100 yuan more expensive than corn so that their costs and profits can be balanced.
If the price of corn fluctuates around 1.2 yuan, the price of wheat will become a thorny problem. If the price of wheat is too high, feed companies may switch to corn and demand for wheat will fall.
If the price of wheat is too low, it can affect the cost of feed and the supply chain of the entire market. The market's forecasts for production play a big role. If everyone thinks that there will be a bumper wheat harvest this year, but the output does not meet expectations, wheat prices will have to come under upward pressure.
They stabilize prices by regulating market supply, which can play a big role in critical market moments. If the reserve puts more wheat into the market when the price of corn is not strong, the price of corn may fall further. This is a boon for feed companies that rely on corn. The price of wheat will also be omitted due to this, waiting for a second instruction from the user.