Ginger Market Trends, Analysis and Updates

Ginger preliminary statistics in Feb,2017

(1) Anqiu, Changyi and other large northern major producing areas, increase production, yield is very high.

(2)The rapid development of Yunnan area, there is still a large number of unsold ginger, warm winter to make just a little bit loss of ginger under the ground, Yunnan ginger in many places can be growing longer in years, in 2017 the enthusiasm of ginger cultivation is still not reduced.

(3)Relatively few exports in 2017. The underlying reason may be that there is no advantage in cost-effectiveness of ginger, and that foreign ginger exporters are scrambling for Chinese ginger customers’ market, including fresh ginger and dried ginger as well.

(4)Last year, farmers who planted ginger were sold too early to feel less fortunate. They have the inertia to think that most of them may wait and would sell at the end in 2017.

(5)There a warm winter in 2016, which led to there less gingers.

(6)Under normal circumstances, the fall of 2017,farmers who planted ginger will early digging young seedlings ginger and sell as earlier, which would impact on the market.

Ginger price is expected to rise in August,2017

First, the inventory of ginger is decreasing. Due to the soaring ginger prices in 2014, positive market conditions, ginger, and the plummeting price in 2015, the market is generally bearish and the willingness to stockpiles will be reduced. As a direct result, the inventory in early 2016 is insufficient, which is the reason for storage bullish in the end, but also contributed to the new ginger autumn and winter prices rose early, after the overall market in the low throw to run.Scarcity is expensive, the storage volume become less and the past few years the price of ginger is not very high ,so that the enthusiasm of farmers to grow ginger is not very high. In fact, there less ginger in 2017, and storage volume become less, the following price will rise accordingly.

Second, demand increases, ginger is a rigid demand for goods. Ginger`s per capita consumption level is not high, consumers are far less sensitive to the price of the producer, Its change would have limited impact on one single consumer is, and during the price volatility, consumption can maintain a relative increase.

Thirdly, with the increase of exports, China is an important exporter of ginger. The export regions include the Middle East, Southeast Asia, Europe, the United States, Japan and South Korea. The export volume showed an upward trend in 2016 from a year earlier. From January to November 2016, the cumulative export volume has reached 0.49 million tons, an increase of 127,300 tons over the same period of last year, an increase of 35% over the same period of last year (the volume of export was was 0.498 million tons in 2015, and the annual export volume is estimated to increase by 33%). Projected according to this trend, 2017 exports should increase by 37%. In 2017, there is less inventory of ginger market, less output, more demand and more exports.

New updates in the ginger market in October,2017

The area in 2017 is not large and some ginger farmers have temporarily changed the planting structure. Some people left the industry ahead of schedule.

In 2017, it was a difficult year with wehther disasters. From planting till now, some producing areas of Yunnan and Shandong have been flooded at different levels.

In recent years, ginger prices from high to low, so that many storage business losses. 2016 is also a yield-increase so that some ginger farmers sell Ginger ahead of schedule, later Ginger prices all the way higher. Which led to the higher price of new ginger, increased storage risk of new ginger, compressed the profit of 2017 Ginger space. A natural disaster in 2017, saved the 2017 Ginger.