The Chinese ginger price continuously increased for one week, but the sudden rise is now subsiding. The ginger market has entered a period of fluctuations. There are several reasons for this change. First, the overall supply volume is growing. Second, the enthusiasm of visiting traders is waning. Traders busily purchased ginger in preparation for the double festival on the first of October, when Chinese consumers celebrated both National Day and Mid-Autumn Festival. Ginger retailers have plenty of stock, so buyers are less eager to purchase new stock. That is why ginger trade has slowed down.
Buyers only purchase according to regular needs. The ability of the market to absorb fresh ginger is now limited. Third, processing factories in some production areas have already prepared all their orders, which means that their demand for ginger is in decline too. These developments have recently caused frequent fluctuations in the Chinese ginger market.
There is no lack of ginger from storage, and although ginger farmers do not have much ginger left in their own storage, they can still supply the market for some time. Visiting traders have stopped stocking up for the festival period, and are now buying according to concrete market demand. The ginger price is likely to show a slight decline.
There is still a small volume of fresh ginger in the Chinese market, but the price of fresh ginger is not as high as people expected. The supply volume of fresh ginger is extremely limited. Furthermore, traders are focused on the domestic market and they show more interest in ginger from storage. That is why the price of ginger from storage experiences fluctuations, while the price of fresh ginger is quite weak. When farmers start harvesting again and the supply volume grows, only then is the price of fresh ginger likely to improve.