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Although the price of fresh garlic in Jinxiang Garlic Market showed a slight increase last week, in comparison with two weeks prior the price is still falling. The main reason for this development is the continued increase of garlic supply to the market.
The price is falling, the trade volume is increasing, and so is the trade value. The reasons for this situation are as follows:
1. Garlic enters the market in large volumes and traders with refrigerated storage purchase garlic in greater volumes.
2. Garlic farmers are eager to sell their garlic harvest. The garlic trade volume is large. The large garlic volume on the market causes the garlic price to fall.
3. Traders who purchase garlic to fill their warehouse are rational in their purchase behaviour. When the market reaches their anticipated price, they purchase. When the market exceeds their anticipated price, they stop buying.
4. Garlic processing factories stopped production on June 19th, which immediately reduced the purchase volume, and the price of small garlic dropped.
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