The wheat market generally tends to be stronger in the fourth quarter, with prices rising to annual highs between late December and early January. And this year into the fourth quarter of the wheat market shock operation, after entering December not up but down. With the Spring Festival still a month away, can the wheat market rise again?

The current wheat market long-term shock operation is mainly caused by downstream demand is not prosperous. The start-up of flour milling enterprises is low, and the purchase of wheat is limited. After meeting the production demand, the willingness to continue to purchase raw grain at high prices is not strong, and the purchase price falls immediately. This year due to price reasons, wheat downstream market lost the competition of feed enterprises, milling enterprises on the market price increasing impact, wheat afternoon market can rise, or depends on the specific demand of milling enterprises.

Affected by the epidemic, the demand for flour market is very bleak this year. In the past four days, it is the traditional peak season for the flour market. With the improvement of flour goods, the operation and profit of flour making enterprises will gradually recover. But the current peak season of the flour market is not prosperous, flour enterprises to go slowly, in order to avoid a serious inventory backlog, operating rate is always at a low level. And because of the shortage of goods, flour prices are also difficult to rise, leading to long-term low corporate profits. On the one hand, the boot is limited, on the other hand, the profit is low, so that this year's flour enterprises will be weak to maintain their own safety stock, will not be as in previous years under the premise of full grain stock, then receive a part of wheat to prevent later market changes. Therefore, the acquisition price of powder enterprises to maintain a long-term shock situation, when the appropriate price increase, do not want to close on the price again. However, the Spring Festival is approaching, the driving effect of flour is still more or less some, when the flour making enterprises to start up, grain will increase again.

Grain merchants are now in a more obvious panic mood, after the wheat market rose and fell for many times, gradually lose confidence in the future market, most grain merchants want to be in the year before the price is appropriate to finish the inventory, or leave a small part of the gambling market. This also makes the current phenomenon of piling up to sell grain is serious, grassroots market grain supply is very adequate.

Xiaobian believes that the wheat market can resume rising prices again before the year. On the one hand, the current purchase price of flour enterprises gradually falls to the grain merchants' surplus grain cost line, grain merchants' reluctance to sell sentiment becomes tight again, and the quantity in front of the enterprise is significantly reduced. On the other hand, with the New Year's Day and the Spring Festival approaching, it is expected that in the middle and late months of this month, the pulverizing enterprises will start to pick up. At that time, with the increase of wheat consumption, the purchase price will be raised again, and the stock of raw grain will be supplemented. However, the upside space is more limited, or 1.65 yuan/jin for the previous high.