Advertisement

Chart of the week: the rise of the garlic-hoarders

The wholesale price of garlic in China, which accounts for more than 80% of the world’s exports, has risen since 2015 as heavy rains damaged crops. Garlic hoarders and speculators have propelled prices to multi-year highs.

818-COTW-1200

China's clampdown on equity trading has prompted speculators to bet on commodities instead, sayEmiko Terazono and Lucy Hornby in the FT. Take the bubble in the garlic market.

The wholesale price in China, which accounts for more than 80% of the world's garlic exports, has risen since 2015 as heavy rains damaged the crops planted for the 2016 harvest. People began to hoard garlic, while speculators have now piled in, propelling prices to multi-year highs.

Advertisement - Article continues below

Mung beans and pickled walnuts are other niche markets to have "fallen to the vagaries of hot money'".

Viewpoint

Economists are bad at short-term forecasts, especially when it comes to assessing the impact of anticipated shocks, where... prejudice dictates the prediction. But they tend to be much better at the longer-term implications, and I do worry that we are starting to fall prey to the very reverse of Project Fear call it Project Delusion where to express almost any vaguely negative view on economic prospects is to be labelled "unpatriotic". What's required is realism and honesty economic conditions are going to get tougher, but so long as cool heads prevail, not disastrously so. Time for Project Reality.

Jeremy Warner, The Sunday Telegraph

Advertisement
Advertisement

Recommended

Invest in water and provide a buffer against future pandemics
Soft commodities

Invest in water and provide a buffer against future pandemics

Global water shortages have long hampered growth and development, and climate change has exacerbated the problem. Will the coronavirus pandemic be a t…
22 May 2020

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”
Investment strategy

The MoneyWeek Podcast: how to age well and profit from the “longevity dividend”

Merryn talks to economist and author Andrew J Scott and discusses how we can profit from the "longevity dividend" as we live longer; why we need to re…
6 Aug 2020