Unlikely to bounce back later in the season

China: Fall in leek prices

Sannong Zhongguo reports that the price of leeks in north China has been low since autumn vegetables entered the market. Not only is the price low in comparison with the same period last year, but also in comparison to the last few days. The main reason for this development is an excessive supply and transport difficulties do not help either. Will the price increase later in the season?

Poor weather in Shanxi and Shandong, including excessive rainfall and snow, hindered transportation, which reduced the delivery volumes. The price initially increased as a result. As we entered the season of the Great Snow [December 7th to 21st], leek production areas in north China prepared for the first frost when the weather hinders transportation. Traders in various sales areas quickly prepared products for the market and the price temporarily increased. However, this increase only lasted one week, and then fell a great distance again.

Leek production areas in south China are in the middle of their supply season, so from a supply-demand perspective the market is still flooded and the price of leek is unlikely to fall. Whether the price can recover in the future depends on weather conditions.

China Sublime Information (CSI) predictions show that leek supplies  from south China significantly increased after mid-December and that supply will remain abundant as leek production areas in south China take over from leek production areas in north China. As for demand, markets show little inclination to stockpile leek, while farmers are eager to sell their leeks. The leek market therefore remains weak, and weather conditions will be key in the leek market development.

Source: cnr.cn

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