Entering August, wave after wave of heavy rainfall is impacting on the growth of ginger seedlings and cellar inventory in the production areas. After each rainfall, the price of ginger showed a trend of first falling and then rising, accompanied by the listing and delisting of Sheung Shui ginger. At present, the ginger market has taken advantage of the situation, and the price of ginger has risen continuously.
Driven by multiple factors, the price of ginger has begun to get higher since July, and it is still in a volatile situation in August. Recently, the price of ginger has risen significantly, and it has risen all the way.
The reasons for the continuous rise in the price of ginger are mainly the following:
1. Recently, there has been more rain in the domestic production area. The overall volume of goods in the market is not abundant. The enthusiasm of wholesale merchants to take goods is high, and they are quick to take them. The upcoming Mid-Autumn Festival slightly boosts the development of the market. It is a peak season for transactions every year on August 15 in the lunar calendar. In addition, it is close to the opening of major primary and secondary schools, and the wholesale market also has a small amount of stock.
2. Under heavy rainfall, many ginger seedlings were damaged and waterlogged. The expectation of yield reduction was high. The flooding in the cellars where farmers store ginger is serious, and the source of tradable goods in the hands of farmers is decreasing. Farmers are still reluctant to sell products of good quality, and they insist on high prices.
3. Under the heavy rainfall in the early stage, the price of ginger has declined due to the drag effect of Shangshui ginger. In addition, there is a high expectation of production reduction, and storage ginger providers have been in a wait-and-see mood for a while. They have begun to collect and store ginger again. The trend of storing ginger has brought hope to the future of the ginger market. At present, the storage company is actively entering the market, although there is a certain difficulty in receiving the goods as farmers are reluctant to sell. The storage companies are still queuing up to participate in collecting and storing ginger.
At present, although the remaining amount of ginger in Shandong Province is still more than the same period in previous years, the gap is not large. Compared with the remaining amount last year, it only increased by 4%. The remaining amount of ginger in the first half year is indeed the highest in history for this year. People at all levels of the industry are not optimistic about the later stage. So the ginger prices at this early stage have been going downward.
Source: Mysteel