As the weather is becoming colder, the consumption of white radish is gradually increasing. During the whole of November, the price of white radish had been rising without stop on the market. Now all that has changed and prices are dropping. Why? And what does the future hold.
Prices for white radish had started to move upward at the end of October in the production regions. Both the speed and length of the surge surprised many people. At that time, there were 4 reasons for the price to go up. First of all, the whole cultivation surface of white radish has dropped by around 25%. Secondly, the supply of white radish has been halted for a while because the stock was depleted. Thirdly, a lot of rain fell at the start of November. In combination with a drop in the temperature, the production regions have had difficulties to export their goods. At that point, the price indicated a new upward motion. Fourth and last, the sales markets of Fujian, Guangdong, etc., in the South started to improve. This has propelled forward the speed at which contracts are signed and that at which good products are sold.
But halfway through November, as the white radish from the production regions was collectively brought on the market, the supply encountered a shortage and disappeared. The price followed into a period of fast decline.
The reduced cultivation surface for the white radish has also reduced the production volume. This has caused the white radish price to be relatively high during the new production season. In the middle and later part of December, the white radish will enter the preservation stage. The cost will increase and at the proper time, the stored goods will be brought back on the market when the price is moving upward.
