At the end of April, the price of refined powder in Shandong and Hebei was 80-84 yuan per bag (50 jin), while that in Henan, Anhui and Jiangsu was 79-81.5 yuan per bag. In contrast, in early April, the price of refined powder in Shandong and Hebei was 81-84.5 yuan per bag, while that in Henan, Anhui and Jiangsu was 80-83 yuan per bag. In April, the price of refined powder fell by 1-2 yuan per bag, or about 1.3-2.5%.
March of the lunar calendar is the traditional flour consumption off-season. On the one hand, after the Spring Festival, flour distributors have a certain reserve and are not in a hurry to carry out a large number of stocks; on the other hand, the weather gradually turns hot, which is not conducive to flour storage; on the other hand, at this time, migrant workers gradually leave their homes, and the rural population in villages and towns has reduced their flour consumption.
In recent years, there has been a saying among flour manufacturers that “off-season occurs every year, especially this year”. In March, the flour market has gone through a process of rising and falling, and in April, the flour market continued to be weak. Flour manufacturers in unsatisfactory sales, but adjust the price of flour shipment, generally showing a small number of downward trend.
In April, flour mills in Shandong, Hebei, Henan, Anhui and Jiangsu were operating at 40 to 50 percent of the total, with some even below 40 percent. Low startup rate also reflects poor flour orders from flour manufacturers. Flour factories generally reflect that there are fewer new orders, basically maintain the needs of old customers, and mainly produce according to orders.
Because of the decline in flour prices, the lower startup of flour manufacturers and the lower output of by-products such as bran, standard flour and sub-flour, the price of by-products began to rise in mid and late April, but it is still difficult to improve the overall operation of flour manufacturers. Since mid-late April, wheat market prices have also risen. Rising raw grain prices, falling flour prices and rising by-products prices do not improve the profits of flour manufacturers, or even further compress their profit margins.
The profit of flour factories is not good, and some even suffer losses. In this case, some flour factories shut down for maintenance and the supply of flour is reduced. At present, flour prices have gradually stabilized and the downward trend has slowed down. Zhuo Chuang expects that the flour market will continue to operate steadily, and the flour price will be affected again after the new wheat season comes on the market in mid-May. (Source: Zhuo Chuang Agriculture)