DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/zmtg7n/chinas_wheat) has announced the addition of the "China's Wheat Market Review of 2013 and Outlook of 2014" report to their offering.
This report reviews changes in the domestic and international wheat market and presents an outlook for the industry in 2014.
The annual average price of wheat in China is 2,448 Yuan/ton in 2013, up by 12.71% than that of last year, and that is the highest annual growth since 2008. It is the first time that the growth of wheat price exceeds the growth of the corn price and rice price since 2010.
The growth of wheat price is the result of the adjustment of the prices of the three grains. The growth of wheat price in 2013 is caused by the decrease of grain output, especially the output of improved varieties, which is the result of the adverse effect of the bad weather condition on grain production during the wheat growing period. The supply and demand of wheat shows that there is still adequate supply of wheat to guarantee the security of domestic consumption of wheat. Production factors continues to rise, which leads to the increase of wheat production cost and then the rise of wheat price. Despite the great growth of grain price, the period in which the grain price rises shows that farmers didn't get much benefit from the rise of grain price; instead, the cost-profit rate of grain planting decreased to the lower level in history, and will affect grain planting in China in recent years.
When there is a sharp rise in domestic market, there is a sharp decrease in international market, which in turn produces certain effect on domestic market. The enterprises engaging in wheat import in the coastal area improve their competitiveness and expand their market shares. Yet the small import volume is still unable to strike the whole industry.
However, in 2014, the distribution of wheat import quotas prefers the coastal processing enterprises and traders, which will bring them more benefits and improve their market competitiveness. At the same time, it is also a great support to the western food enterprises using imported wheat as raw material in the catering industry. Yet these restaurants and food enterprises will not yield the profit to consumers of the western food, who, as a special consumer group, never care the price of the pastry food. However, the distribution of the wheat import quotas will impose pressure to the wheat powder processing enterprises, especially the private-run enterprises, which are always struggling for survival, in mainland China. The distribution of wheat import quotas will, to a certain extent, decrease the price of wheat in wheat production area and constrain the effect of national policy for supporting domestic grain production, thus deviate from the basic strategic goal of ensuring the grain security of China.
The price of wheat is not only dependent on the supply-demand of domestic and international wheat production, but also affected by the global macro economy. In the near future, the appreciation of US dollar will in a certain degree bring down the international wheat price and also produce an effect on domestic market.
Key Topics Covered:
I. Review of Wheat Price
II. China's Wheat Production and Supply
III Domestic Wheat Consumption
IV. Annual Wheat Security in China
v. Global Wheat Supply and Demand
VI. Macro-economy Restrains Wheat Price
VII. Wheat Production and Price Trend in 2014
VIII. BOABC Grain Series Report Profile
For more information visit http://www.researchandmarkets.com/research/zmtg7n/chinas_wheat