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3 bad news "add fuel to the fire", wheat prices are going to fall, July 23, 2024 wheat market

This year's wheat harvest is a bumper year, which also means that there is a lot of high-quality wheat, and in this case, low-quality wheat has become a "golden pimple" - not only is it difficult to find, but there is no chance.

But last week's soaked wheat gave grain merchants the opportunity, the grain quality is different, the moisture is different, the price is also different, the range is 5 Mao ~ 1 yuan. - In the face of such business opportunities, traders from all over the country rushed to it, and many people thought that they would make money directly.

But I never thought that after the large moisture blister Mailah came back, and then carried out all kinds of drying, the cost was already higher than the price of the reserve - I was dumbfounded. The grain seller made money, and the grain buyer lost money - stealing chickens did not make rice.

Therefore, this kind of blistered wheat is only suitable for short-distance or surrounding grain merchants to make money, and people from other provinces or other places want to pick up such a cheap - there is no door! This is also the fundamental reason why the bubble wheat hype died down after a week.

3 bad news "add fuel to the fire", wheat prices are going to fall, July 23, 2024 wheat market

Hello friends, today is July 23, 2024, and the wheat prices of Wudeli, Jinshahe, Yanjin Keming, and Jining Lisheng continue to fall, why?

After experiencing a "short-lived" price increase, the number of flour companies began to increase, and there was only one result: price drops. At the same time, there were three more negative news in the market, which directly shattered the mentality of grain storage points and traders.

3 bad news "add fuel to the fire", wheat prices are going to fall, July 23, 2024 wheat market

(1) Auction/procurement "adds fuel to the fire"

(1) The second grain depot in Baoding, Hebei Province sold 5,413.737 tons of first-class wheat in 2020 at a bid price, with a floor price of 2,420 yuan (down 20 yuan from the last time), and a floor price of 3,000 tons, with a turnover rate of 55%;

(2) Hebei Xinliang Grain Trading Co., Ltd., bidding for sales of 6853.232 tons of first-class and second-class wheat in 2023, with a reserve price of 2420~2440 yuan, all of which were unsold.

(3) Hebei Guantao County Jinhui Grain and Oil Purchase and Sales Co., Ltd. will sell 5,000 tons of first- and second-class wheat in 2021 by bidding, with a reserve price of 2400~2420 yuan, a transaction price of 2400~2420 yuan, and an average transaction price of 2404.27 yuan.

(4) Jiangsu Nantong Grain Group Reserve Grain Management Co., Ltd., bidding for the purchase of 10,000 tons of white wheat in 2024, with a reserve price of 2,560 yuan, all transactions, and the transaction price is 2,520~2,530 yuan.

(5) Grain and Oil Reserve Center of Linwei District, Weinan City, Shaanxi Province, bidding for the sale of 1967.635 tons of first-class wheat in Weinan, Shaanxi Province in 2020, all transactions, with a reserve price of 2540 yuan and a transaction price of 2540~2550 yuan.

Whether it is sales or procurement, it is obvious that there are two different mentalities of the two subjects, the first subject, the sales will fall when the auction fails, and the price will be lowered until the transaction is completed. The second body, the supply side has no expectations for the market, as long as there is a profit, the transaction will be made.

3 bad news "add fuel to the fire", wheat prices are going to fall, July 23, 2024 wheat market

(2) The wheat rebate is serious, and the price increase will be cancelled

High temperature + high humidity + precipitation in North China leads to the phenomenon of wheat backwater, in this case, the process of flour enterprises will be stricter for the moisture card. Do you think it's over? Not yet, just getting started.

Subsequently, flour companies began to cancel the price increase, which is also what the editor expressed in the previous article: "not only strict requirements, but also cancel the price increase" - this practice makes the grassroots grain points even worse.

Henan Sifeng raw grain: Xinchen at the same price of 1.25 yuan, sub-optimal 1.29 yuan, Youmai 1.325 yuan, attention, the point is coming! The bulk density of 800 is the standard, there is no price increase, 1 gram below 800 is deducted 1 percent, and it is rejected below 780.

All kinds of operations are nothing more than four words - price reduction in disguise.

3 bad news "add fuel to the fire", wheat prices are going to fall, July 23, 2024 wheat market

(3) The price of bran fell again

The price of bran led by "Wudeli" fell slightly, and Hebei Daiming Wudeli fell by 20 yuan, quoting 1,660 yuan. Jiangsu Xinghua and Suqian Wudeli fell 40 yuan and quoted 1,740 yuan. Shandong Yucheng and Qingdao Wudeli fell 40 yuan and quoted 1,620 yuan. Henan Xinxiang Wudeli fell 20 yuan and quoted 1,700 yuan.

Enterprises represented by "Wudeli" have been trying their best to raise the price of flour and by-products, while flour and bran traders are also pulling hard, but they have found that the terminal market is not strong at all.

Therefore, the sale of flour in a short period of time is purely an indicator for traders to complete their tasks, and the same is true for bran.

To sum up, these three negative news have occupied the high ground in the short term, and it is even more difficult to have an inflection point or a 180-degree change.

3 bad news "add fuel to the fire", wheat prices are going to fall, July 23, 2024 wheat market

July 23, 2024, the latest wheat purchase price of the national flour enterprises

Hebei Xingtai good noodles: 1.24 yuan (with tickets), down 5 cents.

Hebei Shenzhou Wudeli: 1.225 yuan (with tickets), down 5 centimeters.

Hebei Daimyo Wudeli: the second class of Youmai is 1.32 yuan, and the third class of Youmai is 1.3 yuan, up 1 point.

Hebei Handan Wudeli: Youmai 02-1, Xinmai 26 net grain price of 1.425 yuan (with tickets), down 5%.

Henan Yanjin Keming: high-quality Mai Xinmai 26, 02-1 net grain to the factory 1.41 yuan, down 1 point.