Affected by rain and snow, the supply volume in the North China production area is limited. The price of ordinary rice in the Henan production area is generally stable. High-quality polished rice in the Northeast production area remains firm, but the downstream acceptance of the price is not high. As the Spring Festival approaches, oil factories have successively formulated plans to stop purchasing before the festival, and it is still necessary to pay attention to the time when oil factories stop purchasing.
As the Spring Festival approaches, regarding the pre-holiday prices, no matter what views spot merchants in the market hold, it is difficult for them to change the current supply and demand pattern within the limited time before the holiday. Downstream buyers are cautious in stocking up, and even if upstream suppliers are willing to ship, they find it hard to accept low prices. Price increases lack momentum, and there is limited room for a sharp drop.
For spot goods, it is suggested that if there is a profit, one should sell them to lock in profits in advance. After all, business is a long-term endeavor, and profits and losses are not determined by a single moment but by the long run. In the futures market, spot goods are not disturbed by new factors, and the futures market follows the weather in producing areas and macro adjustments. Spot goods still lack effective upward factors as long-term support, and the medium and long-term pattern of strong supply and demand remains. After the Spring Festival, we need to be vigilant about the possibility of speculation on the remaining inventory at the grassroots level, and pay attention to the situation of oil factories stopping purchases and macro impacts.
