The commodity price changing fastest over the last couple of days, is garlic. In only the short period of two weeks, the retail price of garlic was reduced by a dramatic margin. Because the price for garlic has consistently been breaking high price records for the past two years, plantations of farming households in Shandong province and other producing locations have surged. The growth in the size of plantations is very clear. In addition to that, no abnormal weather conditions took place during winter and springtime, so garlic plants were growing well.
At this moment, new garlic from producers is entering the market one after another, which caused the supply of garlic to increase substantially. Therefore the price of garlic has dropped rapidly. Moreover, because the garlic price has demonstrated a rare drop at this earlier stage, much of the expectations of favorable later market periods for garlic will remain unmet. As a consequence, sales in garlic will be fairly vigorous as soon as the product hits the market.
At the end of May, the temperature will gradually rise, which will allow the garlic to be dried better. Moreover, the price will be cheap, so residents will also purchase a little more garlic. Suffering from the concentrated impact of all new garlic entries, the price for dried garlic is likely to remain low. The golden period for garlic is over.
