With a large number of late onions on the market, the storage of onions in Gansu has kicked off. As of early September, most of the market players who have onion stocks have low activity in entering the market, and the amount of the stocks is not large. The support of storage on the onion market is not obvious for the time being, and onion prices in the producing areas are stable.
Gansu's early red onions began to be harvested in early July, and yellow onions went on the market in large numbers in mid-July. The area of onion planted in Gansu this year is about 20,000 hectares, an increase of about 4,000 hectares over last year. However, due to factors such as high-temperature weather, the output per hectare has declined this year, so the total output has not changed significantly compared with last year. In early September, as the early onions came to an end, and the mid late onions came on the market in large numbers, the storage of onions in Gansu kicked off. The market action in the production areas is dominated by storing products. In the short term, the price of onions is stable.
The cold storage of onions is mainly concentrated in Shandong. Due to the high pre-purchase price of onions cold storage in the Shandong area, the profit is rather thin. The market players who have the stock of onions are not actively taking out the products, coupled with the influence of onions from Gansu, these onions in cold-storage conditions are experiencing slow trading, and prices are rather lower and fluctuating within a narrow range.
At present, the market players who have cold-storage onions in all parts of Shandong still hold a wait-and-see attitude towards the market, and the support of the storage on the onion market is not obvious for the time being. On the whole, onion storage is good and negative factors are superimposed. On the positive side, there is the supply of early storage support. Although the remaining quantity of cold-storage onions is still large, the quality of the current supply on the market is shrinking and gradually losing market competitiveness. The onions produced in Gansu and Inner Mongolia have the advantage of quality. If the quality of the cold storage supply is more controlled in the later stage, it may be possible to obtain a more ideal price if it is released on the market in time.
On the negative side, there are fewer good products from the production area year-on-year: Affected by factors such as climate and plant diseases, there are fewer good products from the production area this year, especially that the poor-quality sources in Northeast China account for the majority, and quality affects prices. In the short term, the price of onion is unlikely to have a clear upward trend. The price of onion is not ideal, and the wait-and-see situation of the onion-storage holders will increase.
Later, the pressure on the shipment of cold storage onions will be greater. The cost of cold storage is relatively high: this year onion prices are relatively high year on year, and storage profits are low. Some cold storages choose high-quality onions to store, so the source of onion storage is relatively tight, and the cost of renting warehouses has increased, which has increased the risk of delivery to a certain extent. There are also uncertain factors such as exports: South Korea, Japan and other countries have lower demand than the same period in previous years. Due to the impact of the epidemic, onion exports are limited, coupled with the impact of high sea freight, there is still great uncertainty in exports.