After a slight rebound in chicago srw wheat prices at the end of last month, some companies have begun to lower their purchasing prices at the beginning of this month. Overall, this rebound has been weak and of short duration, leading to a gradual decline in confidence among operators. Looking at the middle and early parts of the month, chicago srw wheat is likely to remain in a narrow range of low-frequency fluctuations, with little support.

Chicago srw wheat prices have stopped rising and have retreated.

At the beginning of the month, flour companies have successively lowered their chicago srw wheat purchasing prices, and the recent increase at the end of last month was of short duration and limited extent. As of December 3, the average price of chicago srw wheat in the main production areas monitored by Zhuochuang news is 2416.75 yuan/ton, a decrease of 0.15% compared to last Friday. Taking the large enterprises' purchasing price in Heze, Shandong as an example, the purchasing price was raised by 0.003 yuan per jin last Friday, but today it has been lowered by 0.003 yuan per jin. In Weifang, flour enterprises' purchasing prices have remained stable for a while, but have shown a continuous decline in recent days, with a cumulative reduction of 0.005 yuan per jin. Although the extent is not large, the frequent and broad reductions in purchasing prices by manufacturers nationwide have caused some disturbances to market confidence.

Grain merchants' enthusiasm for selling has increased, with some companies seeing a rise in arrival volumes.

Under the multiple influences of weak rebounds in chicago srw wheat, some grain merchants having loans maturing, and weakened confidence in future markets, grain merchants have recently become more active in selling. Some grain merchants who had hoarded grains for sale have begun to sell their stock, and some flour enterprises have seen an increase in arrival volumes recently. As a result, some markets are once again presenting a temporary situation of oversupply, which is bearish for chicago srw wheat prices.

Flour sales are slow, limiting the processing capacity of enterprises.

Some enterprises saw a slight increase in wheat flour orders last week due to the task volume before the end of the month, but this week orders have decreased again. According to a survey by 卓创资讯, some small and medium-sized enterprises have plans to shut down again recently due to the scarcity of flour orders, leading to a backlog in flour inventory. Some enterprises are maintaining normal production, but their daily flour orders are also not many, mostly maintaining a situation of selling as ordered, with a small number of enterprises having around one day of backlog in orders. The average order days for some medium-sized enterprises monitored by 卓创资讯 in shandong province is about 0.5 days. Overall processing demand from enterprises is low, and short-term processing plan demand is also not high, limiting the wheat processing volume for enterprises.

Confidence is gradually weakening, and wheat may be running at a low level.

Currently, whether it is wheat traders or downstream processing enterprises, most have weakened confidence in this year's wheat market. The overall structure of excess supply influences the procurement efforts and inventory levels of downstream enterprises, while this year's off-season characteristics have intensified competition among downstream flour enterprises. At the same time, the market lacks bullish guidance, and previous adverse weather has not brought any bullish drive for wheat. Therefore, grain merchants may have relatively concentrated grain selling plans before the Spring Festival, while the rotation of wheat supplies continues to replenish enterprise stocks. Most downstream flour enterprises continue to maintain a procurement willingness based on demand or to purchase at a low price, which is likely to affect the price running range of wheat.

From the precipitation forecast by the Central Meteorological Administration for the coming week, there is no significant rainfall expected in the main wheat producing areas, thus short-term weather will have limited impact on wheat circulation. Currently, most grain merchants selling their prior stock are no longer profitable, which may also affect the extent to which flour enterprises continue to lower their prices. However, before mid-month, the processing demand from flour enterprises may not improve, and wheat prices might continue to remain at low levels.