Recently, red chilis in production areas have too much moisture. Products with high humidity are inconvenient to transport and not suitable for storage, leading many purchasers to refuse the products. As a result, demand is sluggish and prices are under pressure.
Since late last week, with the improvement of the weather in the production areas and growers’ increased attention to quality, the level of moisture has improved. This has led buyers to regain their confidence and increase their purchasing efforts. As a result, prices stopped falling and stabilized.
In the Jinxiang production area, the supply volume in each market varies. Although the total supply is not large, oversupply is still predominant due to the lack of buyers. Buyers continue to purchase at low prices. Currently, the prices of general grades of Sanying chilis with a high level of dryness are marketed at 7.00-7.05 yuan per half a kilo.
As the production of red chilis in China as a whole is lower, the current lower prices are the representation of the natural fluctuation of the market and prices will have room to rise after a short period of adjustment.