Due to natural and human factors such as the reduction of cultivated land and increasingly serious desertification, the prices of China's grain crops have been gradually rising. According to data from the China Industry Insight Network, domestic corn supplies have remained in a tight balance as corn prices continue to rise. At times, there have even been rushes to purchase grain, and many farmers switched to growing corn. However, as the planting area increased and corn harvests improved, prices continued to decline after the corn became available on the market in autumn 2012, while trading remained sluggish. Since the beginning of spring 2013, many areas in Northeast China have experienced difficulties selling grain.

Many large-scale grain growers had intended to wait until after the Chinese New Year to sell, as corn prices had remained low before the holiday and they expected prices to rise afterward. In reality, however, corn prices in the market kept falling the longer they waited. Once spring arrived, corn that would normally have been sold long before was still piled up in houses and courtyards.

With rising temperatures and the risk of corn mold disease, many enterprises were reluctant to purchase corn. As corn prices continued to fall, the government launched temporary reserve purchases. However, many farmers found it difficult to benefit from the government's temporary reserve purchasing policy, while grain brokers took the opportunity to downgrade quality classifications and lower prices. The selling price of corn fell to around 1.3 yuan/kg.

At the same time as prices declined, costs continued to rise. According to survey data, corn planting costs increased by approximately 16% year on year, while earnings per tonne decreased by 165 yuan compared with the previous year.

The sharp drop in corn prices caused them to fall below the temporary reserve support price in some regions. In response, China Grain Reserves Corporation stated that it would increase grain storage and purchasing efforts in Northeast China. Subsequently, temporary reserve purchases were successively launched across Northeast China on an open basis.

Some analysts believe that temporary reserve purchases have stabilized grain prices and that there is limited room for further price declines. However, some market participants believe that temporary reserve purchases of grain from Northeast China provide a certain level of support for the market, but that the short-term grain price trend remains unpromising in terms of purchasing and sales conditions in the northeastern production areas. Analyst Liu Shi stated that support-price purchases are subject to certain quotas. Once the quotas are fulfilled, much of the grain held by farmers will have to be handled by small merchants and peddlers, who will then lower their purchase prices.

A curious phenomenon has emerged in recent years: when grain prices rise, farmers are not in a hurry to sell and may even withhold their grain in anticipation of selling at higher prices. Conversely, when grain prices are expected to pull back, farmers rush to sell, resulting in a crowded, herd-like selling situation.

As the grain market gradually opens up, during the price negotiations between farmers and purchasers, farmers should learn more about the market and learn to scientifically choose the right time to sell their grain. First, they should establish a reasonable expected price, calculate in advance how much they invest and produce per mu of land, and determine what percentage of profit can be achieved at different prices. Once the price reaches their target, they can sell decisively. There is no need to follow the crowd or constantly compare prices in pursuit of the highest price, because grain is also a commodity and its price will inevitably fluctuate.

On November 16, 2018, the National Development and Reform Commission stated that, after comprehensively considering factors such as grain production costs, market supply and demand, domestic and international market prices, and industrial development, and with the approval of the State Council, the minimum purchase price for 2019-produced wheat (third grade) would be 112 yuan per 50 kg, a decrease of 3 yuan from 2018.