Hubei province reports that the average purchase price of wheat was 3071 yuan per ton in the province, up 25 yuan per ton compared to the previous week.
Despite the rise in wheat prices, flour prices were down 3 yuan per ton on the week to 3746 yuan per ton due to weak downstream demand and some flour companies have suspended purchases of wheat.
The situation in the wheat market has been further complicated by the rise in Covid case in Henan province, the largest wheat producing province.
Henan has seen a dramatic rise in Covid cases which has led to restrictions which has disrupted logistics and deliveries of wheat and flour mills in Hubei have needed to source wheat from further away.
On Tuesday the province reported 359 new daily Covid infections, up from just 36 on Sunday. This is the highest level of new daily cases the province has reported during the pandemic.
The combination of this additional distance, and the disruptions to logistics, have pushed prices much higher with some quotes for delivery around 3360 yuan per ton.
Rapeseed prices rose 70 yuan per ton to 6850 yuan per ton, while rapeseed oil fell 80 yuan per ton to 14,140 yuan per ton.