Last week, due to a higher supply of large ginger stored in warehouses, sales were slow and prices in sales markets fell to different degrees. However, the market for small yellow ginger was stable with downstream wholesalers actively making orders for the holiday, and prices in some production areas rose slightly.
Currently, factories processing ginger for export mainly use their own stock and purchase ginger stored in cellars or warehouses on demand. As ginger prices continue to fall, a wait-and-see attitude is prevalent. It is expected that this week, except for orders made to meet rigid demand, the number of orders for export will not increase notably and won’t bring an effective boost to prices.
Wholesale markets in China have been affected by the continuous price drops in production areas. Market prices in sales markets are also falling in degrees. Sales markets are saturated and movement is slow. If the market in production areas stays weak this week, prices of large ginger are likely to fall further, and sales volumes are not expected to increase significantly.
Some analysts expect that with the approaching of the new ginger harvest season, there are inevitably more farmers who are selling stocks from cellars. In the meantime, stocks from warehouses are also gradually being shipped out. Therefore, it is expected that there is insufficient momentum for the increase of prices this week, which may remain stable with a slight decline.
Source: jiang7.com