Typhoon "Lekima" landed in Shandong last week and caused substantial economic losses. Although the price of ginger increased after the typhoon passed, the price did not rise as much as expected. The typhoon certainly brought torrential rain, but the overall impact was smaller than last year. There does not seem to be a major impact on the price of ginger at the moment, but is there a possibility the price will rise in the near future?
The typhoon brought various degrees of rainfall to Weifang, Anqiu, Laizhou, Pingdu, Qingzhou, and Laiwu in Shandong. Some of the low-lying ginger fields in Weifang flooded. In addition to the usual plant diseases and insect pests, some of the ginger in Weifang looks alright from the outside, but inside the root is rotting. The impact of the typhoon was relatively severe in Qingzhou. However, some of the ginger production areas in Qingzhou suffered from natural disasters last year and farmers limited the amount of ginger planted on low-lying fields this year. The overall impact of the typhoon was not widespread, but some areas suffered severe damage.
In the short term, farmers enter a busy period when they prepare the fields. At the same time, this is the period when plant diseases and insect pests frequently occur. Farmers are not selling much in this period. The supply volume is small. The price may therefore show a short-term rise. In the long term, the surplus in production areas is smaller this year than around the same time in previous years. However, we are close to the start of the new ginger production season. Some farmers may sell their stock to empty their storage space for the new harvest. If the demand does not greatly increase, then suppliers will enter fierce competition. However, if the weather and other conditions remain favorable, then there will be plenty of opportunity for the ginger price to rise.
Source: Chinese ginger online