The trade price of garlic in the Jinxiang Market followed a V-trajectory, but overall the price slightly increased. Both the trade volume and the price slightly increased. The main reasons for this development are as follows:
1. The beginning of autumn is quickly approaching and garlic begins to sprout. In other words, this is the right time to purchase garlic for storage. Purchasing traders with storage eagerly buy garlic and store it in warehouses. This enthusiasm increases the price of garlic to various degrees.
2. Purchasing garlic traders with storage carefully consider when to buy garlic. When the price falls to the level they anticipate, then they buy. When the price exceeds the level they anticipate, they stop buying. Although they are eager to buy, they are also rational. This explains why the price does not increase more in the middle of this season when traders purchase garlic for storage.
3. The Jinxiang garlic processing factories run at full speed. There are around 75 production lines processing garlic slices. They use more than 6 thousand tons per day.
4. The export volume of Jinxiang garlic also increased recently.
Based on this analysis, the garlic price will remain stable throughout next week.
Source: Business Forecast