Since the end of November, garlic’s market price has been weak, and small and medium-sized storage companies have maintained a high enthusiasm for selling goods. Although there has not been a significant increase in products on the market, the supply is still in a loose situation. After the Indonesian order ends, South Asian and Middle Eastern packaging is issued. Inquiries and inquiries have increased, and domestic customers just need to maintain a stable rhythm of taking goods. Low-priced new garlic and good-quality old garlic have smooth transactions, and other transactions have been slightly light.
The market trend of Ku garlic continues to fluctuate. What are the factors that affect the market?
(1) In terms of supply of goods: Affected by the weak operation of garlic prices in late November, the new garlic holders’ reluctance to sell was weakened, the enthusiasm for selling was increased compared with the previous period, and low prices and substandard goods were sold at discounted prices.
(2) Outbound storage price: The current general outbound storage price is 3.60-3.70 yuan/kg. During the period of garlic storage outside the warehouse, the inbound storage price before July is above 3.50 yuan/kg. Depositors are still in the minority, and most of them are currently not generating profit.
(3) In terms of market demand: Indonesian orders have basically ended. Order prices in other countries or regions in South Asia, the Middle East, and other regions are low. Processing plants have mostly postponed wait-and-see. The demand for packers has decreased, and the export-driven role has weakened.
(4) There are still favorable factors in the market stage. As the New Year’s Day and the Laba Festival are approaching, it will play a leading role in domestic demand and support the confidence of the storage company.
(5) Because this year is a warm winter and affected by the climate, there are dead and lack of garlic seedlings in some areas, which may have some impact on the later market;
(6) After a long period of accelerated consumption, the remaining amount of old garlic in the warehouse becomes less and less, and the impact on the new garlic weakens.
The negative and positive factors in the garlic market are intertwined. Will China Garlic Prices rise or fall in the future? It lies in the speed of the digestion of inventory, the growth of garlic in the new season, and the changes in the external export environment.