The Mintec average November 2021 market price of Chinese origin ginger in Chicago, US, fell by 18 % year-on-year (y-o-y) to USD 1.45/lbs. The downward trend continued into December, with prices falling to USD 1.23/lbs on 8th December, down 23% compared to the same time last year.
The decline follows plummeting prices in China, a major producer and exporter of ginger, where the wholesale price descended to CNY 7.09/kg on 1st December, a decrease of 47% y-o-y and 7% month-on-month (m-o-m). The Mintec price of ginger in China sustained a 13-month-long bearish run, after peaking at CNY 14.73/kg on 28th October 2020.
The fall in prices is attributed to plentiful supply in China, following expansion in planted areas as farmers shifted more acreage to ginger, trying to take advantage of attractive ginger prices last year. The land devoted to ginger cultivation is estimated to have increased by between 10-30% y-o-y in 2021/22. Weather has also been generally favourable throughout the growing season, and yields are expected to increase y-o-y.
Amid the falling prices, ginger trade was relatively slow in China in November, and stocks started piling up with producers, according to trade sources. Some of this ginger will be stored at cold storage facilities and farmers will attempt to market it next year, hoping for prices to increase.
Prices in the US have decreased despite the shipping disruptions and soaring ocean freight costs. Freight costs of a 40-foot container on a route between Shanghai and Los Angeles rose by USD 6,000 (+146%) between December 2020 and December 2021, to USD 10,138/unit.