China garlic market update – 16-08-2022

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From the perspective of the trading atmosphere, during the transition period of garlic without buds to garlic with buds, the influence of the South Outer Ring market was not as strong as before. The proportion of internal sources of goods in the market is also declining, and most of the sources of goods are transported by traders from the periphery.

Well, the reason why garlic prices have rebounded in recent days is mainly due to the centralized replenishment of warehouses by closed warehouses. The last wave of garlic without buds is coming to an end soon, and buyers of uncompleted sources are rushing to purchase and store them.

However, the current price plus the cost of cold storage storage is close to 2.00 yuan/about. In addition, after the beginning of autumn, the garlic sprout road begins to sprout, especially after the weather in the production area suddenly turned cold last week, the temperature difference between day and night changes rapidly, which provides a favorable environment for garlic germination. condition. It is understood that some garlic germs grow to 1/3 of the length of garlic cloves, and the quality of their sources is not superior. Long-term storage may have an adverse impact on the quality of its supply, and the enthusiasm of small and medium-sized retail investors to intervene in the market again to get the goods is biased.

From the perspective of supply, the supply of garlic outside the warehouse in Jinxiang production area has been significantly reduced, and the supply of fresh garlic in Pizhou production area is not much. , the trading volume is still large. In addition, August and September are the harvest time of spring corn in the northern region. Garlic farmers have little time to sell their goods in their spare time. In addition, the merchants who go to the countryside to receive goods make little profit, so the enthusiasm for going to the countryside to receive goods is greatly reduced. , the supply side of the market is gradually tightening, and panic selling pressure cannot be formed on the market.

This year’s garlic purchase and storage has come to an end, the market just needs to become the main source of goods, the domestic market has stable demand from merchants, the garlic rice factory has maintained a stable delivery rate, the operating rate of the garlic slice factory is insufficient, the contradiction between supply and demand has weakened compared with the previous period, and the price of garlic has been fluctuating recently. main. So, in addition to supply and demand, what else should the market pay attention to?

  1. The remaining situation of garlic outside the library: is the quantity still large? Who owns the goods?

Is there more or less garlic remaining outside the library? This topic always attracts attention in the late stage of purchase and storage. According to the survey on this website, the remaining garlic outside the warehouse in the main production areas is about 10%, while the amount in the peripheral production areas varies. In some areas, the supply of goods has basically bottomed out. , In some areas, there are still about 20%, and some well-known production areas such as Shanghe, Daming, and Tai’an sell garlic, and the remaining amount can be 20% to 30%. At present, the supply of goods in the middle circle of Jinxiang production area is not much, and there are still some surplus goods in the hands of peripheral farmers. The supply of goods in the middle circle of Henan production area is more than in previous years. There are still some hoarded goods in the hands of traders. The other is that the big landowners cover their goods and are reluctant to sell them. On the whole, this year’s garlic purchase and storage are 7-10 days earlier than in previous years. The first batch of personnel are mostly large households, and the receipt of goods is more rational; the second batch of personnel is the most, and the acquisition is accelerated in the middle, and the price gradually increases; the subsequent batches of personnel Scattered, lengthened the acquisition front.

  1. Will the new season of garlic be reduced? Is the reduction significant?

The new season garlic planting time generally lasts from mid-September to late October, depending on the weather conditions of the year. The garlic planting in this season has not yet started, and the estimation of the area is mostly based on some information currently available. According to the understanding of this website, the purchase price of garlic this year is between 1.60-1.90 yuan/catties, which is a price that does not lose money or make money for garlic farmers. The planting area of ​​the main producing areas may not change much, but There is still a high possibility that the planting area of ​​some peripheral production areas and new production areas will be reduced; this price is a big loss for the landowners, and the large landowners expect to reduce their crops in the new season. In addition, the sales progress of garlic seeds this year is also slower than in previous years. In the early stage, when the garlic price was low, the garlic seeds had a short-term fast growth, but the sales became slow after the price rose. Things can get better.

It is worth mentioning that the garlic after the beginning of autumn is not the same as the garlic during the summer harvest. As the saying goes, an autumn rain is a cold one. According to the forecast of China Weather Network, a new round of rainfall will strike in Shandong, Henan and Jiangsu regions. After the garlic sprout sprouted, the frequent occurrence of wet and rainy weather has increased the risk of incoming goods from outside the warehouse.

Various indications show that in the transition period of garlic without buds to garlic with buds, the concerns of narrowing demand, unstable economic recovery and high inventories continue to impact the garlic market, and the current garlic market does not have a perfect countermeasure.

Linyi Organic Foodstuffs Co., Ltd is the leading supplier of garlic products, including: fresh garlic, frozen garlic clove frozen garlic cubes, frozen garlic puree/paste, dehydrated garlic flakes, dehydrated garlic granules, dehydrated garlic powder.