Wheat prices are rising gradually, farmers are waiting for the price

Henan's summer grain output hits a record high, and the food crisis does not exist

　　On August 12, the announcement of "Summer Grain Purchase Progress in Main Producing Areas" issued by the State Bureau of Grain and Material Reserves caused heated discussions. According to the announcement, as of August 5, the main wheat producing areas had purchased 42.857 million tons of wheat, a year-on-year decrease of 9.383 million tons. Among them, Henan Province, where wheat production accounted for a quarter of the country, purchased 9.124 million tons of summer grain, a year-on-year decrease of 538.8 Million tons.

　　Henan Province is the country's largest wheat producing province, accounting for a quarter of the country's output, which is vital to maintaining national food security. Therefore, this news immediately triggered widespread discussion among netizens, and many netizens even believed that this was caused by a reduction in grain production, and that "a food crisis may be coming."

　　Has the grain production in Henan really reduced? Is the food crisis really coming?

　　The fact is that Henan's summer grain output has reached a record high this year. According to data released by the Henan Survey Team of the National Bureau of Statistics on July 16, under the complex and volatile production conditions of summer grains and the impact of the new crown pneumonia epidemic, the total output of summer grains in Henan Province this year still maintained the highest level in history, reaching 75.075 billion jin, which is more than last year. 167 million catties out.

　　The spokesperson of the National Bureau of Statistics, Fu Linghui, also disclosed at a press conference on the operation of the national economy in July that my country had achieved a bumper harvest of summer grains this year, a record high, and the output of summer grains increased by 0.9% over the previous year. The food crisis does not exist.

　　The total output of summer grain harvest wheat increased, why did the purchase volume decrease year-on-year?

　　According to the person in charge of the Henan Provincial Grain and Material Reserve Bureau, the amount of summer grain purchases includes the amount purchased by the market and the amount purchased by the market. "This year, the volume of purchases in the support market has decreased, and the volume of market-oriented acquisitions has increased." As of August 10, Henan Province had purchased 230 million kg of wheat, a decrease of 6.54 billion kg from the same period last year; market-oriented acquisition of wheat was 7.89 billion kg, compared with the previous year. An increase of 800 million kilograms over the same period. Market-oriented purchases have gradually become the dominant force in grain purchases, which is in line with the reform direction of the grain price formation mechanism and the purchasing and storage system in recent years.

　　Procurement by the market is a policy of minimum grain purchase prices implemented by the state in the main grain producing areas to protect the interests of grain farmers. The "Henan Province 2020 Minimum Purchase Price Grain Purchase Work Plan" stipulates that the national standard third-class wheat and rice produced this year are used as standard products, and the minimum purchase price of wheat announced by the state is 1.12 yuan/kg.

　　Yang Huipo is a large grain grower in Huaxian County, Henan Province. In previous years, he sold all the grains at a good harvest, but this year he was not in a hurry to sell. He waited until the price reached a high point a week ago before selling. Yang Huipo said that at the first harvest in June this year, the price of wheat was less than 1.1 yuan per catty, but the price rose to 1.21 yuan per catty a few days ago. He told reporters that the price of wheat this year was actually higher than in previous years. Last year, the highest price of wheat was only 1.16 yuan/kg. "Looking at the price this year is quite high, everyone is thinking about saving it first and selling it when the price is higher."

　　In fact, it is a common phenomenon in Henan rural areas like Yang Huipo to "sell for a price" of his own grain. China Youth Daily and China Youth Daily reporters interviewed many farmers and found that most of them chose to store their grains this year.

　　Farmers did this because, on the one hand, food prices were higher this year, and on the other hand, there were rumors that “the epidemic caused food shortages” in the market. They believed that food prices would continue to rise, so they chose to continue to wait and see. At the same time, they also thought of self-existence. exist.

　　The relevant person in charge of the Henan Provincial Grain and Material Reserve Bureau introduced that since the start of the summer grain purchase, the demand for raw material replenishment of flour processing enterprises has been strong. Due to the good quality of Henan wheat this year, the purchase and sales of summer grains were active in the early stage of the purchase of summer grains. Reserve and processing enterprises from other provinces have moved to Henan Province. The purchase quantity is large.

　　Another animal husbandry practitioner believes that some feed companies have begun to use wheat instead of corn, which has continued to rise in price, which is also one of the factors leading to the increase in wheat prices.

　　The relevant person in charge of China Grain Henan Branch believes that the phased increase in wheat market prices is normal. On the whole, wheat supply and demand are still very stable, and prices will not fluctuate too much. Regarding the phased increase in market prices, relevant departments have begun to take effective measures to ensure supply and stable food prices.

　　Grain production in Henan Province has maintained a steady increase in output, and has remained above 65 billion kg for three consecutive years since 2017. “At present, the grain inventory in Henan Province is at a relatively high level. The government’s grain reserves have been rotated and the reserves are sufficient; the grain inventory purchased by the city is still at a high level.” The relevant person in charge of the Henan Provincial Grain and Material Reserve Bureau said, “Overall, Henan The supply of grain exceeds the demand. Whether it is farmers' grain storage or urban household consumption, they need to be treated rationally, and there is no need to hoard too much grain."

　　Zhengzhou, August 16th

　　China Youth Daily·China Youth Daily reporter Pan Zhixian and intern Yang Xiaofei Source: China Youth Daily