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China: Leek price spikes briefly because of end of year holidays
In the past few years, in many areas, such as Shaanxi and Henan, the large leek harvest has sold poorly. The prices in Pingdu, the main production area in Shandong, represent the leek prices in the entire country. Currently, leeks are piled up in storage in Pingdu, as they are not selling well. This means that the surplus is higher now than last year. Because of the weather, the quoted prices increased somewhat, but the overall trade is still far from flourishing.
In the fourth season of this year, the leek price has changed dramatically. The high temperatures and frequent rain in summer have led to the decay of Shandong leeks. Some regions have lost up to 50%. The leek price has increased accordingly, pressuring the sales. The high summer prices were unprofitable, and some traders even suffered losses.
The leek trade is now clearly dropping, and the prices are decreasing as well. Even though the prices will spike briefly because of the holidays at the end of the year, this will be hard to maintain for a longer period of time. By the end of the month, the Zhejiang leek will enter the market, so the supply will be abundant. Because of the holidays, the prices will increase somewhat in the short term, but this will only be limited.
Publication date: 1/2/2018
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