The new season has already begun for Chinese ginger traders. The price of ginger increased several times between September and late October, but has since showed a downward trend. Traders who purchased ginger at high prices earlier in the season now hope to sell their ginger to traders who are currently stocking their warehouses before the price falls even further.
However, traders with empty warehouses are unwilling to take the risk of buying ginger at high prices and selling when the price is even lower. They wait to see how the market will develop. Traders who currently have ginger and were hoping to sell are worried about this development. They are eager to get rid of their stock, even willing to lower their prices. That is why the price of ginger currently shows a downward trend.
The main production areas of Chinese ginger did not suffer from extreme weather conditions. The new harvest of Chinese ginger is better than last year both in terms of production volume and in terms of product quality. The harvest first began in September and buyers have eagerly speculated on the market. They had hoped to purchase large volumes and sell them onward at high prices.
"We sell our ginger via traditional retail channels, primarily in Fujian, Guangdong, and Guangxi. We expect the price to come down even further as the supply volume gradually grows. The overall supply volume is larger this year. In addition, traders with old stock in storage are eager to dump their stock. That may have an even greater impact on the price." This is according to Mr. Xie Qiaowei of Fujian Fresh Trade Co., Ltd.
For more information:
Fujian Fresh Trade Co., Ltd.
Tel.: +86 187 6069 9693