Chinese wheat prices rise as demand for flour increases and supply tightens

According to Beijing on Nov. 16, wheat prices in China's main producing areas were mostly higher in the week to Monday, with supplies falling due to increased demand for flour.

In Shijiazhuang City, Hebei Province, the price of wheat is 2080-2110 yuan per ton, up 20-30 yuan from last week.

In Dezhou City, Shandong Province, the price of wheat is between 2040 and 2050 yuan.

Due to the increase in demand, processing plants and feed factories increased their purchases, but farmers hesitated to sell because of rising prices and tight supply.

The recent heavy snow in the main wheat producing areas has affected transportation.

Analysts say winter wheat has almost been sown, but it must be protected from low temperatures.

Due to holiday consumption at the end of the year, demand for wheat flour near the end of the year is likely to increase, pushing up wheat prices, according to an analyst at China Grain. Com.

Last week, the government sold 374700 tons of wheat at weekly auctions, or 21% of its planned sales of 1.8 million tons.

The average selling price is 1856 yuan per ton, up 7 yuan from last week.