The price of garlic showed a slight increase last week. Traders in the domestic consumer market and the international export market buy garlic based on demand. The slight price increase was the result of speculation in the garlic market.
The price of preserved garlic slightly increased, and the trade volume and trade value increased as well. The reasons for this development are as follows:
1. The supply volume last week was relatively small. A number of traders speculated and sold with profit. This attracted more traders to speculate in the garlic market. Traders with garlic in storage maintained a strong asking price.
2. Buyers only purchase garlic based on demand because the price is quite high. Their trade volume is relatively small, but traders who speculate in the garlic market drive up the overall trade volume.
3. Fresh garlic from Yunnan is making its way to garlic markets throughout China. When the fresh garlic enters the market in large volumes, the price of preserved garlic will come under pressure. The supply volume of fresh garlic is still small, but traders with garlic in storage can already feel the pressure. There are 20 days left until fresh garlic enters the market in Hebei, which means traders with garlic in storage only have a short time to offload their stock.
