Wheat and Rapeseed Weighing Busy - Overview of National Summer Grain Purchase Work Market | Main Production Areas | Summer Grain

Xinhua News Agency, Beijing, July 25th (Xinhua) - Busy weighing of wheat and rapeseed - A summary of summer grain procurement work in China

Xinhua News Agency reporter Wang Libin

Summer grain is abundant and stable throughout the year. According to data from the State Administration of Grain and Material Reserves on the 25th, as of now, various types of grain enterprises in the main production areas have purchased over 38 million tons of wheat, completing about 60% of the expected peak season purchase volume.

Wheat, mainly used as a staple food, directly affects the stability of China's rice bowl. How is the acquisition progressing? How is the market price? How much is the impact of "rotten rain" in some major production areas? Regarding the topic of concern to everyone, the reporter interviewed relevant departments and grain and oil enterprises.

Acquisition smooth, market stable

The data shows that the price of new wheat weighing is around 1.35 yuan per kilogram. The early rainfall affected market expectations, causing a slight increase in prices. Currently, the average purchase price in the main production areas is around 1.39 yuan per kilogram, ensuring the income of farmers selling grain. It is expected that the overall price of wheat will remain stable in the later stage, and the minimum purchase price will not be initiated.

In the early stages of the launch of Xinmai, some main production areas experienced continuous rainy weather, resulting in a delay in the listing time and a slightly slower acquisition progress. Recently, wheat purchases have been concentrated and the daily average purchase volume is at a relatively high level in recent years. Each region shall implement the same responsibility of the Party and government for food security, firmly uphold the bottom line of farmers being able to sell their crops, and guide enterprises to receive grain in a balanced manner and farmers to sell grain in an orderly manner; Strengthen scientific guidance on grain storage for farmers, prevent moldy grains from spoiling grains, and promote loss reduction and income increase; Serious investigation and punishment of illegal and irregular behaviors such as grading and price reduction, "spinning grain" and "issuing IOUs", effectively safeguarding the interests of grain farmers and market order.

The market is active in purchasing and selling. Flour processing, feed, reserve and other enterprises seize grain sources to meet production and operation needs; Trade enterprises actively purchase and increase inventory to further stimulate market vitality; Farmers choose opportunities and prices to sell grain, and the wheat market is thriving.

Due to the impact of rainfall in the Yangtze River and Huai River basins, the wheat harvesting period has been delayed compared to normal years. Wheat from the north and south are concentrated and listed at the same time. The COFCO trade started weighing and entering the market at the first time, with a warehouse opening rate of over 80% in June. As of July 24th, COFCO Trade has launched the acquisition of over 100 warehouses in Jiangsu, Anhui, Hubei, Shandong, Hebei, Henan, Shanxi, and Shaanxi, with a cumulative acquisition of over 1 million tons of summer wheat.

Since the summer grain purchase, China National Grain Reserves Corporation has carried out central reserve wheat rotation purchase work in the main production areas, accelerating the progress of rotation purchase, leading diverse social entities to enter the market for purchase, ensuring market stability, and helping farmers increase their income from grain sales. At present, the progress of wheat rotation acquisition is nearing completion.

Wheat sprouts, there's a way

In response to the occurrence of cloudy and rainy weather in some main production areas, new wheat may sprout, sprout, and mold. Relevant provinces and enterprises have taken the initiative to respond by implementing measures such as harvesting, drying and drying, and disposing of sprouted wheat to minimize the impact of cloudy and rainy weather.

China Grain Reserves Corporation has effectively fulfilled its responsibilities as a central enterprise and strengthened its services to agriculture. 115 directly affiliated enterprises in Henan Province have provided 800000 square meters of drying areas, adhering to 24-hour opening to farmers, providing free ventilation and precipitation equipment, and helping farmers dry more than 6000 tons of wheat, reducing losses and ensuring income.

In response to the emergence of malted wheat in certain areas, COFCO Trading has communicated with end processing enterprises such as flour mills and feed mills to establish classification and grading procurement standards. According to the quality situation, the procurement is classified and stored in separate warehouses to maximize the processing and edible value of wheat, while ensuring the income of planting farmers.

It is understood that malt has a higher protein content than corn, which gives it a significant price advantage and is favored by feed enterprises, resulting in smooth sales. The price of malted wheat in Henan, Anhui and other regions has increased significantly compared to the initial stage of listing, currently ranging from 1.15 to 1.25 yuan per kilogram.

The relevant person in charge of the State Administration of Grain and Reserve stated that wheat in China is mainly used as a staple food, with relatively stable consumption and a surplus balance between production and demand throughout the year. The self-sufficiency rate exceeds 100%. Our country has abundant wheat inventory and reserves. This year's summer grain production has achieved another bumper harvest, with wheat production remaining at around 135 million tons, laying a solid foundation for ensuring domestic supply.

In the past two years, there has been a significant increase in wheat imports, mainly used for feed processing and variety adjustment. This portion of grain will also effectively supplement domestic supply and demand.

Oil and rice, weighing busy

Among summer harvest crops, rapeseed has received widespread attention. The Ministry of Agriculture and Rural Affairs predicts that the area of winter rapeseed will increase significantly, and the yield is expected to reach a historic high. As the largest domestic oil crop, rapeseed accounts for about half of the domestic oil crops and is also the second largest oil crop in the consumer market. Expanding rapeseed production has become the key to improving self-sufficiency and overcoming the bottleneck of oilseed production.

According to the person in charge of COFCO Group, due to dry weather and other reasons in the first half of the year, the rapeseed purchase period has been significantly extended compared to last year. Against the backdrop of the continuous decline in international oil and fat prices, following the principle of "open procurement, price increase procurement, and delayed procurement", COFCO Oils and Oils, a subsidiary of COFCO Group, timely conducted market research and judgment, deployed in advance, scientifically formulated procurement strategies, effectively protected the interests of farmers, and effectively promoted the stability and smoothness of the rapeseed market. As of July 24th, COFCO Oils and Fats has purchased over 22000 tons of rapeseed in its main production areas.

In addition, a large number of new season early indica rice in the southern region is currently being harvested and listed. China National Grain Reserves Corporation has comprehensively carried out the central reserve early indica rice procurement in Jiangxi, Hunan, Guangdong, Guangxi, Zhejiang, Fujian and other places, and the procurement progress is significantly faster than last year.