The price of local onions has been rising continuously recently. Influenced by factors such as reduced production and stocks, local onions are currently in short supply. However, some analysts have warned that it is unlikely that prices of onions will rise sharply in the future, considering that the onion prices have already increased significantly this year.
Hongyan Liu, an analyst from SCI99.com, said that due to adverse factors such as the unfavorable weather conditions last year, the supply of onions on the current market is limited, and prices have increased significantly year-on-year and month-on-month.
With the stock procuring period of onions coming to a close in Shandong, Jiangsu, Hebei, and Henan, the supply of spot market onions is limited, and the prices remain at a high level, as the panting area has reduced, and production is lower. The average price of red onions this week is 0.74 yuan/kg, up 5% from the previous month and up 23% from the same period last year. The average price of yellow onions is 0.62 yuan/kg, up 5% from the previous month and up 195% from the same period last year, as observed by SCI99.com.
Liu believes that high onion prices have put pressure on the volume of stocks. In addition, as dealers of spot market onions have endured severe losses in recent years, there are less spot market onions this year. The products from Jingyuan in Gansu Province are about to hit the market, growing area there has decreased significantly compared to last year. From June 20 to July 10, the onion supplies are still tighter than the same period in the previous year, which may result in short supply, and drive onion prices to remain high, but there is limited space for further increases.
Source: Sannong China