The overall price of Chinese garlic began a slow upward trend last week, but the price of fresh garlic showed a slight decline. Early-season garlic from Henan entered the market and expanded the variety of garlic to choose from. Preserved garlic is no longer the only choice, but neither can fresh garlic completely replace preserved garlic in the garlic market. This is the season when supplies overlap. The trade volume of fresh garlic is only larger than preserved garlic in some markets in China, but the trade volume of fresh garlic will gradually grow, while the trade volume of preserved garlic will decline.
Market analysis
1. The overall supply volume of garlic decreased last week because traders with garlic in storage were unwilling to sell. Buyers were more enthusiastic and purchased according to their needs. The overall trade volume thus increased. Buyers purchasing garlic for export were particularly active. The purchase volume for export increased while the purchase volume for the domestic market declined.
2. The volume of Chinese garlic exported to India rapidly grew last week. Traders with storage and speculators immediately seized this opportunity to raise the asking price. Buyers passively accept the current price and the trade volume is relatively large.
3. Early-season garlic from Henan entered the market in large volumes and the price subsequently dropped. This development increased pressure on traders with garlic in storage to lower their price and sell their stock. Late-season garlic from Jinxiang is expected to arrive on the market in around 10 days. Traders with garlic in storage do not have much time left to sell their stock.
4. Early-season garlic from Jinxiang has already entered the market in small volumes. Late-season garlic is expected to enter the market around May 16th-20th. Late-season garlic shoots currently enter the market in large volumes and garlic farmers are busy harvesting the shoots. The garlic processing industry for the domestic market and overseas markets have difficulty finding personnel. The labor cost has begun to rise and so the production cost of processed garlic is rising as well.
Source: Shandong Jinxiang Garlic Market