Farmers reluctant to sell food vendors to grab early rice, experts say limited increase in the latter part

Industry insiders and experts believe that the price of early rice will continue to rise for some time in the future, but it will not rise much, reminding farmers to look at the market rationally, so as not to delay the timing of the sale.

Some areas or production cuts

Lao Chen, a farmer in Tangnan Township, Nanchang County, Nanchang City, Jiangxi Province, told a reporter from the China Securities Journal that his three acres of land had received about 800 kilograms of early rice this year and the yield per mu was less than 300 pounds. Farmers in the same village are basically the same. “Accordingly, at least 1,000 pounds will be received this year, but some time ago it was dry and squeaky, so there is no way to reduce production.” According to the analysis of the early rice harvesting costs and harvest of Nanchang County, Jiangxi Province, this year, Local early rice suffers from continuous drought in spring and winter, low temperatures, low sunshine duration, relatively delayed sowing time, moderate temperature drought, early rice development delay, effective tillering reduction, and affecting the normal growth of early rice, resulting in a slight decline in yield.

In early 2011, China's early rice had suffered adverse weather such as drought in the winter, spring and summer, drought and flood in June, and rainy season in late July. Since March of this year, China's Hubei, Hunan, and Jiangxi provinces have experienced less rainfall, and the precipitation has decreased by 30% to 40% compared with previous years, and has dropped by more than 70% in severe cases. In June, the natural disasters continued to occur in the early rice producing areas. Flooding disasters occurred in the drought-afflicted areas in the early stage. Early growth of early rice suffered heavy losses. Since the middle and late July, the South China region has entered the rainy season, and the main producing areas of the early rice have continued to suffer from heavy rain. Industry insiders expect that this year's reduction in early rice production in some parts of China is a foregone conclusion.

According to the report on the 2011 early rice acquisition in eight counties in the three provinces of Fujian and Hubei from July 28 to 29 this year, the three provinces and eight counties this year showed an overall “three reductions” trend. Among them, the planting area is 1,955,000 mu, which is 22.0 million mu less than last year; the average yield is 372.6 kg, which is 21.8 kg lower than last year; the total output is expected to be 415,000 tons, which is 100 thousand tons less than last year.

Lao Chen also admitted that although the purchase price this year is high, the income of farmers has also increased. “But now everything is going up so much. The income from farming is far less than going out to work to make money.” Lao Chen said that they are all selling to local grain dealers, and the grain dealers are turning their hands back to local or foreign food processing companies. In recent years, there have been more and more grain processing companies and more and more grain dealers, but fewer and fewer people are planting land. Lao Chen said that this year their village's planting area is less than last year, and many farmers in the same village said this year that they will no longer plant land. "My neighbor next door planted more than a dozen acres this year and said that it will not be planted next year. There will be fewer and fewer farms. I don't know what the output will be next year."

Farmers reluctant to sell wait-and-see prices

The reporter learned that since the local early rice was listed, the price has risen from the very first 108 yuan/hundred pound to 115 yuan/hundred pounds in just 10 days, and it has exceeded 120 yuan/kg in a few days. The “mark” has continued to rise in recent days. The price of 120 yuan/kilogram is far higher than the national minimum purchase price of 102 yuan/hundred pound, and the increase rate is nearly 18%.

Perhaps it is this strong psychological expectation that local farmers are reluctant to sell. Lao Chen told reporters that he had sold about 400 pounds at a price of 120 yuan/kilogram a few days ago. The remaining 400 pounds, Lao Chen said "want to wait and see the back of the market." Lao Chen said, "I still sold half. There are still a lot of our village did not sell. Therefore, grain dealers are now door-to-door to 'grab' early rice." According to him, according to previous years, early rice early It was time to sell out, and it was time for late rice transplanting. However, more than half of the early-season rice in his village was still unsold. Farmers are waiting for higher prices. "Some people say that they can rise to 150 yuan per kilogram, but I think about 130 yuan is about the same."

The same wait-and-see attitude is also common in Jiangxiang Town, Nanchang County. The local farmer Lao Liu told reporters, “In the early days, only people who were really short of money sold the rice, and the rest were waiting for the market.” Lao Liu said that their local farmers all expected that the purchase price this year should be 130 to 150 yuan / pound or so. Regarding the reasons for the increase in prices, many farmers such as Lao Chen and Lao Liu told the China Securities Journal that apart from the important factor of reducing early rice production, the sharp increase in planting costs is also a reason.

Lao Chen calculated the accounts for the reporter, taking pesticide costs as an example. Last year's urea price was about 100 yuan per kilogram. Potash fertilizer price was about 120 yuan per kilogram. This year's urea price and potash price rose to about 120 yuan/kg and 150 yuan/kg, respectively, with an increase of more than 20% year-on-year. "This does not include the labor costs of planting land."

According to industry insiders, the early-season opening price of the government guidance in 2011 was RMB 2040/ton, which was affected by factors such as reduced production and increased planting costs. At present, farmers tend to be more reluctant to sell. Yu Fengyi, general manager of Yihai Kerry (Nanchang) Cereals, Oils and Foodstuffs Co., Ltd., frankly stated, “Farmers generally rely on farming for one year's income. They think that the price is already high already, so it may be even higher.” However, there are also some local food companies that believe that the possibility of high prices and low prices also exists, and wait until the market is clear after the late period, and then a large number of acquisitions will not be delayed.

However, the reporter learned from the following major rice producing areas in Wuhan, Hubei, that although the current purchase price of early rice is bullish all the time, many farmers in the area have a relatively high enthusiasm for grain sales. According to several local large grain purchasing companies, they signed orders with local farmers early this year. Farmers planted early rice in accordance with the company's acquisition requirements. By the acquisition season, as long as the early rice planted by farmers meets relevant requirements, the company’s purchase price will be At the time of the purchase price of the market, it added 4 yuan per kilogram.

Experts say limited gains in later periods

For the purchase price of early rice for a period of time in the future, experts said that on the one hand, this year's major rice production areas are affected by droughts and floods, rising prices of agricultural materials and manpower machinery costs, and rising price levels. The purchase price is poised to rise. . In the latter stage, as the parties gradually entered the market for acquisition and competition intensified, it is expected that the purchase price will increase slightly. On the other hand, due to the large differences in production and prices across regions, the market prices are quite different, creating profit margins for buyers, and the recent market purchases and sales are more active, and market acquisitions have increased. However, experts also reminded that although the price of early rice still has room for growth, the increase will not be too large. Farmers should rationally look at the market outlook and grasp the timing of grain sales to avoid losses.

Yuan Yuanming, an agricultural product researcher in the Research and Development Department of COFCO Futures, believes that due to the increase in planting costs, the farmers' psychological expectations will increase and support early rice prices. However, the increase in the cost of acquisition of corporate loans has constrained the enthusiasm of businesses to collect and sell. In addition, the northeastern rice stocks are abundant, the supply of reserve rice is maintained at a high level, and the targeted sales range is continuously expanding, and the price of grain is under pressure. Therefore, the overall lack of fundamentals and the lack of factors, the sharp rise in prices in the short term is lack of corresponding fundamental factors to match.

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