Preserved garlic from Jinxiang recently entered the Chinese market. The price and the trade volume remain stable. The main reasons for this situation are as follows:
1. Market supply in the first half of last week was common. Traders with garlic in storage were hesitant to sell, and the price remained strong. Traders who purchased garlic for export were eager to buy and purchased according to demand. The overall trade volume expanded, even though trade volume in the domestic market declined. The overall growth is the result of flourishing garlic export.
2. In the second half of last week, as the contracts for garlic export were concluded, the enthusiasm of buyers declined. The pressure on the garlic price increased. The trade volume in the domestic market remained low and buyers shifted their attention from preserved garlic to fresh garlic. The supply of preserved garlic is abundant and traders with preserved garlic in storage took the initiative to adjust the price in order to sell their stock. The price of top-quality garlic remains strong, but the overall price is falling.
3. Early-season garlic from Henan already entered the market in large volumes, but supply is still growing. Buyers are eager to purchase fresh garlic. Their early interest raised the price of fresh garlic. Traders with preserved garlic in storage feel the pressure to sell their stock.
4. Early-season garlic from Jinxiang is also entering the market now. The initial price is quite high, around 5-5.20 yuan [0.72-0.75 USD] per 0.5 kg, but still lower than the price of preserved garlic. The late-season garlic from Jinxiang is expected to enter the market in 3-5 days. The garlic takes 6-10 days to dry, which means that late-season dried garlic is expected to enter the market in around 20 days. Traders with preserved garlic in storage do not have much time left to sell their stock.
Source: Shandong Jinxiang Market