The first harvest of Chinese garlic is completely dried and ready for storage in warehouses. That means the new harvest season has now well and truly started. The weather was quite sunny and clear in the first weeks of June. The moisture in garlic quickly evaporated under these circumstances. In many production areas the garlic is completely dry. The trade in dried garlic began in some production areas as early as the second week of June.
Feedback from various production areas shows that the rent of refrigerated warehouses is quite high at the moment. There is no lack of speculation with regards to the rent of storage space. The rent prices are about 50-80 yuan [7.08-11.33 USD] higher than around this time last year.
The market supply volume gradually increased in Jinxiang production areas after the rainy weather finished last week. Traders are more eager to sell than they were before the rainy weather, but they are not in a strong position. The price is quite weak. This is a buyers market. Traders with storage space put a limit on the price they are willing to pay for the garlic they use to stock their warehouses. The price of mixed-quality garlic dropped from 1.28 yuan [0.18 USD] per 0.5 kg last week to 1.26 yuan [0.18 USD] per 0.5 kg this week. That is a decline of 1.56%.
The price has been quite low ever since fresh garlic entered the market earlier this year. The low price attracts the attention of traders who have the money to speculate. People start investing and the market is active, but traders who actually purchase garlic to stock their warehouses are quite strict about the price they are willing to pay. The market is somewhat chaotic too. There are people looking for medium- to low-quality garlic for processing, while others are looking for large, top-quality garlic. In the end, the international market is chaotic and the Covid-19 pandemic further exacerbates the situation. The market is unpredictable at the moment, and that brings a lot of risk for garlic traders.