Price of Chinese garlic in Jinxiang Market continues to rise
The price of preserved garlic showed a downward trend last week, but the overall average price of garlic still showed a slight rise. Fresh garlic is in the process of being dried and has almost reached the levels required for export. The trade volume of preserved garlic is shrinking. This is the time of year when both fresh garlic and preserved garlic are for sale in the Jinxiang Market. However, as the temperature is rising, the supply of preserved garlic from storage will decline. Preserved garlic is about to leave the market until after September when supply from storage can be sold again. Fresh garlic is drying well. Fresh garlic will soon enter regular trade, but for now the garlic industry is focused on retail in the domestic market and on garlic purchased for storage.
The overall average price of preserved garlic still slightly increased but the trade volume declined. The main reasons for this development are as follows:
1. Fresh garlic is drying and will soon reach the levels required for export. Fresh garlic will then replace preserved garlic in the export processing industry.
2. Fresh garlic is about to enter regular trade. The price is higher than the price of preserved garlic, which means that there is still demand for preserved garlic, but the trade volume of preserved garlic is small. As the temperatures rise, the supply of preserved garlic from warehouses will cease and preserved garlic will retreat from the market.
3. The price of preserved garlic is lower than the price of fresh garlic. Some domestic traders and buyers for the export processing industry still purchase preserved garlic. Traders with preserved garlic in storage are eager to sell. Still, their asking price is strong and even showed a slight increase.
Source: Shandong Jinxiang Market