China: Wheat prices hit a new high, flour manufacturers call on dealers to actively order

Published 2022년 3월 11일

Tridge summary

The article highlights the recent surge in wheat prices in China, reaching a record high due to various factors, including late planting and increased demand. Wheat prices are expected to remain high and volatile in the short term, causing concern for flour distributors and leading to fluctuations in the prices of flour and biscuit products. In response, companies like Arowana and Keming Foods are adopting strategies such as hedging and collaborating with farmers to mitigate costs and maintain product quality. A downstream flour and biscuit manufacturer has adjusted product prices to offset the increased cost of wheat, indicating the pressure on profit margins in the industry. Overall, the high wheat prices point to a challenging market situation for flour and biscuit manufacturers, with uncertainties surrounding the future price trends and the need for effective cost management strategies.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Our reporter Zhao Xueyi Trainee reporter Liu Zhao After the Spring Festival, the prices of agricultural products have soared. After the prices of major food crops such as soybeans and corn set new records, the price of wheat recently jumped to the highest level in history. In the face of rising wheat prices, flour distributors take a wait-and-see attitude and are not very motivated to continue to prepare warehouses. In order to stabilize the mentality of distributors, the head flour manufacturer Wudeli Group sent a letter saying that it predicted that the price of wheat would continue to rise, and hoped that the distribution Merchants see the situation and actively place orders. Wheat prices will remain high in the short term my country is the largest producer and consumer of wheat. According to 2021 data from the National Bureau of Statistics, the global wheat output is 776 million tons, and my country's wheat output reaches 137 million tons. Although China's wheat ...

Source: Chinaeconomy