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Chinese milling demand has weakened as many small and medium-sized mills operate at only about 30% capacity, with some shutting down amid losses. Prices for high-quality wheat have fallen, with reported purchase prices 0.05–0.07 yuan per jin below levels in June and July.
Reduced mill demand limits buying competition for milling-grade wheat and pressures prices. This may also increase the relative availability of wheat for feed use.
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