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The speculative bubble on the garlic continues
China
Tuesday 30 March 2010
FJ
Garlic became the most successful foodstuff with 605% of increase in one year
Traditional ingredient in the cooking and in Chinese medicine , garlic is become the most successful foodstuff in China in 2009 and will certainly keep this place in 2010.
Wholesale prices increased by 605% between March 2009 and February 2010 and are evaluated around 1.200 $ the ton, which is a better performance than the crude oil, gold or cocoa over the same period.
The combination of two factors can explain this speculative bubble:
- a bad 2008 year for the garlic’s producer around the world,
- the epidemic of flu H1N1 which increased the demand of adorned garlic with therapeutic virtues in Asia.
The analysts plan that the prices are going to fall around 600 $ the ton in June, when the new harvest will arrive on the market, but could bounce towards 1000 $ because of the speculators who will want to redo the same profits.
Source : money CNN
