The supply of wheat at the farmer level is relatively tight as farmers are rushing to plant their winter wheat crops. Hubei’s Ministry of Agriculture has wheat prices up 1 yuan per ton last week, which understates the rise in wheat prices.
The market is concerned about the late planting and its impact on next year’s yield. Traders who have wheat are reluctant to sell because of this and that is also adding to tightness in the market.
Flour prices rose as downstream demand increased into the wint...