Garlic price hits bottom and starts to rise

Future garlic price trends

In recent days, garlic prices have continued to rise slightly, and the market has shown signs of bottoming out. Garlic farmers have also increased their willingness to sell garlic. In the process of garlic prices bottoming out and rebounding, short-term depositors who were covered in the early stage and garlic farmers who have not sold garlic will be more active in selling, for fear that they will miss the opportunity to unwind again. This also indicates that the process of rising garlic prices will not be smooth sailing and will encounter obstacles at multiple key price points.

Under normal circumstances, after the price has fallen, a rebound from a low level requires multiple lock-ups. In the early stage, garlic farmers were looking forward to high prices in the face of soaring garlic prices. It turned out to be counterproductive. After the garlic was dried, it dropped by about 1 yuan in a row. Not only did the garlic farmers fail to sell at high prices, but the garlic could no longer be placed outside the warehouse. Garlic must be stored within a certain period of time after drying, or it will sprout. At present, garlic can still be piled outside the warehouse for about a month. So as long as the price of garlic picks up, the market will face the eager sellers of garlic. If the upper selling pressure is relatively large, the price of garlic will not easily rise sharply.

Garlic farmers want to sell garlic. Unless there is a large amount of money to eat at the key price (according to the key resistance level is estimated to be around 2.5 yuan/jin), the price of garlic will pull back at the key resistance level. Of course, it cannot be ruled out that the price of garlic has risen sharply. At that time, garlic farmers may start the mode of reluctant sales and hope to increase. However, time may not support this situation, so it is more likely that garlic farmers will follow the market when the garlic price rises. In addition, if the depository insists on price-limiting purchases, once the garlic price breaks through the rise, the purchase will be stopped. From this point of view, the price of garlic will show a slow rise for some time in the future, and the range will be limited.

The situation of purchasers

The billing situation of warehousing merchants in Jinxiang Market has changed significantly recently. Since the official trading of the new garlic, due to the rapid increase in garlic prices and other reasons, many depositors have been reluctant to purchase. The number of merchants outside Jinxiang Nanhuan that issued orders and received goods has been hovering between 10 and 20, and occasionally there can be more than 30 when the number of people is large. Since the price of garlic has begun to rebound from a low level, the number of companies that have opened orders and received goods has rapidly risen to 60-80. This increase shows that bargain-hunting operations have been officially launched, and there are clear signs that large households have entered the market. Some people say that simply observing the number of billing companies cannot explain the problem. Many acquisitions are billed in multiple places, sometimes divided into groups of people. But the current situation still shows that purchasing and storage companies are optimistic about the garlic market. Whether it is an increase in the number of purchasing and storage merchants or a division into several companies, it means that the demand is increasing, not decreasing. Moreover, when the market was at its peak in previous years, the number of sellers in the South Outer Ring Road was almost the same. From that perspective, this situation is a manifestation of increased demand.

Good start to release

If the price of garlic starts to rise, there will always be someone who can find a positive to explain market conditions and manipulate the market. Although this phenomenon may have occurred during the fall in garlic prices, it will still be mentioned, just like a new major discovery. One of the benefits at this stage is the increase in export volume. The export orders of a leading company in the garlic export industry have recently increased significantly. The order volume has soared from 60-70 containers per week before to about 140 containers per week, more than doubled. A senior industry insider explained that the higher the price of garlic, the more orders there will be. In fact, this shows that there is always demand for exports, and foreign businessmen have been watching the garlic market. Before the price of garlic fell all the way, no one dared to place an order. The price of garlic fell after placing an order, and the loss was visible to the naked eye. Now garlic prices are stabilizing or garlic prices are in a rising stage, and after garlic ordering, it is in a profitable state. Therefore, the higher the price of garlic, the more businesses in the foreign trade industry. Some time ago, the export of hot-fried garlic in the market dropped sharply, and it seems that I still don't know much about the industry.

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Mr. David Tian

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