Wheat**suddenly**, what is the routine behind it?What exactly is the reason?
Introduction. In the field of agricultural production, wheat has always been a commodity of great concern. However, the recent rise in wheat prices has raised widespread concerns. Many people wonder if there is some conspiracy involved. Today, we will take you to a ** after all, what caused the high price of food, a ** after all.
Wheat market conventions.
1. Business strategy of flour enterprises.
The editor believes that the increase in wheat prices is no coincidence, and it is deliberately made by major flour companies. At present, China's flour "sales season", if grain prices continue to fall, it will inevitably have an adverse impact on flour production enterprises. So, in order to ensure their marketing strategy, they adopted the method of pushing up wheat to drive the needs of the market.
This is the usual trick of flour companies, that is, to make the people have the psychology of raising prices, and then let everyone hoard without money, so as to cater to their psychology. When the time comes, the flour company will go on a rampage, depressing the grain and making more profits.
2. The mentality of grassroots grain merchants.
Because the bottom grain merchants have bought it after it has stabilized, in order to obtain higher returns. As soon as the farmers see that the price of wheat has risen, they will forget about their previous fears. However, due to waves of panic buying and selling pressure in the market, food prices have continued to fluctuate.
3. Inventory management of large companies.
Some large companies with relatively high inventory levels "neutralize" their costs through large-scale purchases. The danger of this situation is that when the wheat is scarce, the inventory of large enterprises will become a burden and will not be able to obtain the desired benefits.
4. Changes in supply and demand.
Every time the grain ** drops, a group of "pick-up men" who want to profit from the grain trade will emerge. Although they are not many in number, they still have some influence on **. During this period, the ** of wheat is likely to pick up as market demand rises and supply falls.
An explanation for the phenomenon of rising wheat prices.
Despite seeing the recovery in wheat prices, people still need to keep a clear head. Here's a detailed explanation of this phenomenon:
1. Gradually widen the distance from the high position.
After several rounds of comparison, we can see that after each time, the gap between the stock price and the September high is gradually widening. This means that the recovery in wheat prices is only short-lived, and it has not really returned to high levels.
2. Existing practices in the market.
The rebound in grain prices this time is not accidental, because of the business strategy of flour enterprises, and also because of the mentality of ordinary grain dealers. On the one hand, due to the high expectations of the world, on the other hand, ordinary grain dealers have carried out a large number of rush purchases and sales in the process of ***. Such a convention has caused the wheat to fluctuate again and again in the recent past.
3. Based on the company's own profits.
In order to ensure their profits, flour producers expect that the wheat will not be excessive. Therefore, when the wheat ** declines, the company will stop in time, so that the market has a glimmer of expectation for it, so that it can continue to hoard grain. This approach can not only maintain the stability of the market, but also protect the profits of enterprises.
To sum up, the editor feels that the current round of ** is just a "return to the light", not a real rebound. Due to the business model of flour enterprises and the joint effect of various factors in the market, it has led to the trend of wheat in China. For investors, they should be vigilant and take a reasonable view of wheat**.
Brief summary. Judging by today's market conditions, price increases are a worrying factor. Judging from the operation law and performance of this **, this ** is only a short-term rebound, not the real trend of **. Investors should be vigilant and look at the ups and downs of ** rationally.
At the same time, the editor also expects you to have a better understanding of the operation of **, so as not to be deceived by the crowd. Only through continuous research and reflection can we achieve better returns.
Finally, I sincerely hope that you will make rational decisions using the information given by this editor, and I wish you all a successful start in the wheat market!