In week 49 (November 30-December 5, 2020), the supply of potatoes from each production area was sufficient. Traders had more choices and became pickier in choosing goods. High-grade products fetched high prices, but the movement of products of average quality was not fast, and the volume traded was lower. In addition, many of the growers are optimistic about the market outlook and have adopted a wait-and-see attitude.
Judging from the market situation in each production area, prices remained weak and stable. Traders were cautious about purchasing, and most activities were for replenishing the stock based on rigid demand. As a result, the traded volume did not increase notably.
There are a few reasons for this. First of all, the spring and autumn crops this year had bumper harvests, resulting in increased production and a saturated market. Traders’ willingness to purchase is inevitably lower.
Secondly, sales in some markets have been monopolized. As they all have specialized suppliers, growers’ sales channels are greatly reduced. Although in major wholesale markets in Southern China, such as Guangzhou Jiangnan Fruit and Vegetable Market and Shanghai Jiangqiao Market, premium cold storage potatoes from Shandong are marketed at high prices and are sold well, there is a scarcity of such products in production areas.
Finally, as the cold air moves southward and the temperature drops, transportation costs are increasing. If the price on the market doesn’t rise, buyers are unlikely to purchase potatoes with high transportation costs. Moreover, at the current trade price, most traders of storage potatoes are operating at a loss.
Chinapotato.org predicts that in week 50, the market in various production areas may continue to stay weak and stable, and the price of medium-grades may decline slightly.