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As per the studies conducted on Commodity Market, experts state that the domestic wheat prices in China have experienced a peaking trend during July, after a slight decline in the month of April. This caused fluctuation in the market space, marking an advancement in the price trends of wheat rates in China. During the first week of July, wheat prices were at 2,802 RMB/ton, which increased to 2,858 RMB/ton during the last week of July 2023, measuring a rise of around 0.07%.
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During July, the downstream industries focused on building warehouses to stock up on wheat, which came to an end. The enterprises raised the prices, aiming to replenish the warehouses, which led to a weakening of the overall purchases and sales of the commodity. Moreover, the vacation season at schools and universities has contributed to the declining demand for wheat, making the overall supply weak in some areas and strong in others. This led to a slight decline in the prices during the first ten days of July.
Later, during the mid-July session, the weather in China, which turned hotter, contributed to the weakening of the wheat demands in the global market. Additionally, shutting down a few enterprises and maintenance purposes has led to low wheat demand. With that decline alongside, China's Wheat harvest period has ended. However, the wheat market's overall supply has stabilized, amid this supply-demand situation, while the wheat market has experienced fluctuation.
Along with the rising corn prices in Linchi, the companies trading wheat are reluctant to sell it easily and are supporting the high prices prevailing in the market. However, the precipitation has impacted the quality of wheat produced and has generated some high-quality wheat. The wheat, with good quality, attained good prices in the market, due to which the fluctuating rates have rebounded during the end of the month.
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According to Procurement Resource, wheat prices in the Chinese commodity market have seen fluctuation and rebound during the month of July. The high temperature and the vacations being announced in the universities have led to sluggish demand for the domestic wheat product. However, the early rainfall improved the quality of wheat production, resulting in an advancement in the rates of the wheat commodity. Predictions state that the market will remain unstable during the month of August, marking a weak supply-demand circle.
Senior Lead Analyst
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