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Why is supply of Chinese potatoes from storage slow when the price is strong?

The trade in Chinese potatoes from storage is slowing down in major production areas such as Wuchuan in Inner Mongolia and Tengzhou in Shandong. The delivery speed is slow, but the price remains stable. In some production areas the price slightly declined. The production areas in Xiji, Ningxia, and Dingxi, Gansu, are exceptions. The potato trade in those areas is smooth and the trade volume is growing.

Wuchuan in Inner Mongolia: The trade in fresh potatoes was flourishing in Wuchuan in the first half of the production season. Because the trade volume in fresh potatoes was large, the volume left over for warehouses was relatively small. At the moment warehouses in Wuchuan only have around 20%-30% of their storage volume left. Top-quality potatoes in particular are in high demand. Traders with top-quality potatoes in storage are hesitant to sell their stock.

Tengzhou in Shandong
In Tengzhou, the autumn harvest of fresh potatoes takes place in late November and early December. The market is currently focused on trade in fresh potatoes. Visiting traders are enthusiastic and trade is smooth. The trade volume in fresh potatoes is quite large. Apart from this, the product quality of the spring harvest of potatoes was very good. Trade flourished and the number of potatoes left over for storage in warehouses was relatively small. The warehouses in the area can absorb this volume and traders with warehouses are quite content.

Looking at the overall conditions in the potato market, the volume in storage is relatively small in Inner Mongolia and Shandong, which means that supply may be low later in the season. If market demand remains regular, then the price will rise later in the season.

Source: potato.agri.cn

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