[Biz info] SunSirs: Domestic Wheat Prices Fell Back Overall in March According to the monitoring of SunSirs, the high price of domestic wheat market fell sharply in March. On March 1st, the average price was 3,064.00 RMB/ton, while on March 31st, the average price was 2,918.00 RMB/ton, down 4.77% during the month..

Analysis review

In March, the demand for terminal flour continued to be sluggish. Affected by the relatively loose supply in the wheat market, manufacturers reduced their wheat purchase prices after replenishing their inventory, driving the domestic wheat market prices to remain weaker at the beginning of the month. The fall in wheat prices had led to the reluctance of grain storage trading entities to sell and underpin prices, which led to a phased tightening of supply in the domestic wheat market. The wheat market prices in some regions had subsequently rebounded slightly, while the overall domestic wheat market prices had stopped falling and rebounded slightly. Due to the gradual rise in gas temperature and the continued decline in terminal flour demand, enterprises reduced the purchase price of wheat again after replenishing their stocks, and the overall high price of domestic wheat market in the first half of the month moved forward slightly in shock.

Since late March, domestic temperatures continued to rise, and due to the more sluggish demand for terminal flour, flour enterprises continued to reduce the purchase price of wheat. At the same time, policy wheat continued to enter the market, the surplus grain available in the market was generally sufficient. Due to strong market supply and weak demand, domestic wheat prices had fallen sharply across the board. The sharp decline in wheat prices led to the cashing out of grain storage trade entities. The domestic wheat market supply became more relaxed, and domestic wheat prices fell sharply under pressure.

Market outlook

According to wheat analysts from SunSirs, in the short term, under strong market supply and weak demand pressures, it is expected that there will still be some room for the domestic wheat market price to fall in April. Supported by the decrease of high-quality and tradable surplus grain in the domestic wheat market in the later stage and the high cost of grain storage, the overall space for wheat market prices to continue to fall is limited.