Hubei province cash prices move lower

The rice market in Hubei remains relatively quiet following the government’s recent announcement of raising the minimum reserve purchase price.

Wheat prices fell by 13 yuan per ton to 3067 yuan per ton. Province-average prices are now down 63 yuan per ton from their peak in early February.

Local reserve auctions saw weaker performance, with an average price of 3000 yuan per ton for 2020 wheat, down 66 yuan per ton compared to last week.

Rapeseed and rapeseed oil were also down 100 yuan per ton and 110 yuan per ton respectively.

Hubei Ministry of Agriculture also notes that some feed companies are tentatively starting to purchase small amounts of wheat for use in feed now that is it becoming cheaper. But with current price spreads between wheat and corn, this is unlikely to become a major demand-driver for wheat.