The Study On Mechanism Of Chinese Wheat Price Formation

Wheat is one of the most major food crop and the main flour and rice of residents'consumption in China. The changes of wheat price affect not only the income of farmers, but also relate to social stability. Therefore, the wheat prices have been the object of national focus. Since the founding, the state has adopted many policies in order to stabilize wheat prices. The wheat prices have been formatted in the different periods, such as a system purchase price, system selling price, fixed purchase price, the minimum purchase price and so on. This paper is based on the actual data to analyze wheat price from the perspective of the wheat price and use econometric models to explain the phenomenon of wheat price fluctuations.This article,divided into five phases,analyzed evolution of the system of food prices in China since the founding to find affection in the process of food price formation due to the country's macro control policies.Then classify wheat prices according to the flow process of wheat, and analyze the price of wheat at different stages combined with actual data.After then, analyze the main factors of the formation of wheat prices from sub-production costs, circulation costs, supply and demand and national policy these four aspects. We find that rising prices of fertilizers and other agricultural production, is the main reason to promote the higher wheat prices in recent years; circulation costs are concentrated in the storage and processing stages; the national policy regulating have a direct impact on the formation of wheat prices.Finally, apply econometric models with the relevant data to regress on the main influent factors of wheat price fluctuations in China. The regression results showed that wheat imports, inflation and changes in the prices of agricultural production is a major factor in price fluctuations of wheat in China. The country's macro-economic control policy is the direct reason to cause fluctuations of the wheat prices.