Harvest season begins in October in the major ginger production areas of Changyi and Anqiu, Shandong. Ginger farmers have sold all their stock of old ginger and the new harvest will only gradually enter the market. The current market supply of ginger is running dry, but this has not caused the price to increase. Even worse, the price of ginger is currently lower than it was around the same time last year. Many traders state that they will wait and see how the market develops when the new harvest arrives, but that it is unlikely that ginger will be as "trending" as last year.
Old ginger dump sales almost over, price still low
Ginger farmers sell their old ginger in bulk as new ginger gradually enters the market. This opens up warehouse space for the new ginger harvest. The old ginger stock of last year is already almost completely sold out, and even though the ginger price showed a stable increase during this year, the current price is still rather low.
The trade volume decreased as old stock sold out and the new harvest only slowly entered the market. The current trade volume of fresh ginger is around 500-600 tons per day. The price of fresh ginger is only slightly lower, but the trade volume is much smaller now than it was in the same period last year. However, the trade volume will increase as market supply gradually increases.
Little short term fluctuation for ginger price
The temporary supply shortage seems to have little influence on the ginger price, which is around 2.5 yuan [0.36 USD] per 0.5 kg for old ginger. Last year, however, it was around 4 yuan [0.58 USD] per 0.5 kg. The main reason for this development is weak market demand. Many major ginger traders state that ginger is not likely to become "trending" this year. The production volume decreased in some production areas, but the surface area devoted to ginger plantation increased in other production areas, so that the overall supply volume remains stable and the price is not likely to fluctuate much in the near future.
Source: Weifang.dzwww.com