Recently, onion prices in China have been rising continuously. Affected by factors such as reduced production and reduced supply from storage, onion supplies in China are struggling to meet the demand, spurring onion prices to increase significantly this year.
Affected by unfavorable factors such as last year's weather, the supply of onions in the current market remains tight, and the price has increased significantly year-on-year and month-on-month. As the purchasing campaign of onions from Shandong, Jiangsu, Hebei, and Henan for storage has ended, the spot market supply is tight, and the price of onions remains stable and moderately rising, due to the reduced supply and low production.
It is reported that the average price of red onions last week stood at 0.37 yuan/kg, up 5% from the previous month and up 23% year-on-year; the average price of yellow onions stood at 0.62 yuan/kg, up 5% from the previous month and up 195% from the same period last year.
The high price of onions puts a strain on the volume going into storage. In addition, spot market traders suffered serious losses in recent years, resulting in fewer spot market supplies this year. The crops from Jingyuan in Gansu Providence are about to come onto the market, but its production area has decreased significantly compared with last year. During the period between June 20 and July 10, the onion supply is expected to remain tighter than in the same period last year, with supply lower than demand, driving onion prices to remain at a high level. However, there is limited room for further rises.
Source: Today's Headlines