The supply volume of fresh peppers from the production area of Wucheng continues to grow. The fresh peppers from production areas in Hebei are also beginning to enter the market. The market position of pepper was quite strong, but began to grow weaker last week. Farmers in Henan were at first hesitant to sell, but now they seem more willing. The overall supply volume from production areas in the north is expanding. If traders with storage space follow the trend and increase their purchases, then the price is likely to remain high. However, if traders wait and see how the market develops, then the price is likely to show a slight decline.
The price of small peppers fluctuates
The main reason for the rising price of pepper is the enthusiasm of traders with storage space. However, as their purchases increase, so does the purchase price. The high purchase price leads to a financial risk for the traders as their profit margin shrinks. The majority of pepper traders temporarily stop purchasing pepper when the price is too high to keep the costs low and avoid financial loss.
When the price is rising, farmers are more hesitant to sell because they are hopeful the price will rise even further. Buyers have more difficulty finding sellers and the shortage of supply further pushes the price up.
Traders and processing factories buy larger volumes of pepper because the temperature is falling. Demand for pepper always grows when the temperature drops. However, when the price becomes too high, buyers take a step back to see how the market develops.