Price of agricultural produces plays a decision role to reflect the overall price trend in the Chinese market. It is considered as the price foundation among all commodities and result in volatility in overall price level. In recent years, rapid development of national economy and urbanization boost the price of agricultural produces. Three main types of agricultural produces include cereal (wheat, rice and corn), oil-bearing crops (rapeseed, soybean and peanut) and vegetables will be analyzed in this report. Purchasing Price Index (PPI) will be used to analyze the price of these main agricultural produces.
In China, the price of agricultural produces is the price foundation among all commodities. Price change of agricultural produces can lead to fluctuation in overall price level. With the rapid development of economy, agricultural produces did have increased in their prices in recent years. Since a kind of agricultural produces increases its price, it might cause instability of whole agricultural market. The representatives of main agricultural produces involve rice, corn, wheat, soybean, rapeseed, peanut and vegetables. In May 2014, price of cereal such as rice, corn and wheat, achieved a stable growth rate. Oil-bearing crops like soybean, rapeseed and peanut, experienced its prices declining initially and remained stable.
