According to the monitoring of the Commodity Market Analysis System of SunSirs, Angelica entered the mid-term of production this week, but its prices continued to decline. Currently, the unified price of Angelica in Gansu province is between 100 to 110 RMB/kg, a decrease of 19.71% compared to last weekend.

Angelica is a commonly used domestic bulk Chinese medicinal herb, with a growth period of 2-3 years. It is nurtured and transplanted every year, and the harvesting time is from late October to early November each year. After the plant withers and turns yellow, it can be harvested. Angelica prefers damp slopes, and drought is the main cause of reduced yield.

In the first half of the year, due to factors such as drought, high temperature, and dead seedlings last year, Angelica seedlings were severely affected and the prices were high. This year, the planting area of Angelica was not large. In addition, the high temperature and drought in Gansu province this summer are still relatively severe, and the bolting rate of Angelica is relatively high, generally around 50% -60%, and even some plots have reached 90%, seriously affecting the yield of Angelica this year.

At the end of August, the drought in the Gansu production area caused the production of Angelica to advance by more than half a month, further affecting the yield of Angelica. In late October, a large number of fresh Angelica products were launched, and according to market feedback, the overall production of fresh products was severely reduced.

In the first half of this year, due to the impact of the reduction in planting and production of Angelica last year, coupled with strong market demand, new funds continued to enter, causing the price of Angelica to continue to rise and reach a historical high.

In the first half of the year, a large amount of funds entered the herbal medicine market to purchase Angelica, but it was not actually digested. Instead, a large amount of goods were stored in various cold storage facilities. After June, the demand for Angelica entered the off-season, and the market remained relatively stable. In addition, during this period, there were continuous news of production cuts for Angelica this year, and most hoarding merchants were optimistic about the market after the new production of Angelica.

However, after the new production of Angelica, the demand from pharmaceutical companies was average, and the movement of Angelica was slow, and the market did not rise as expected. In addition, entering the second half of the year, the pharmaceutical industry mostly relies on bank loans for purchases, and merchants urgently need to withdraw funds. Merchants' willingness to sell at reduced prices has increased, and prices continue to decline.

At present, a large number of fresh Angelica products are on the market. Although Angelica has had positive effects on production reduction due to early drought and bolting, the benefits have been released in advance. In addition, high prices have affected actual demand, and low price hoarders are more likely to achieve profits. There are many people who want to sell, making it difficult for Angelica prices to stand firm. After the price reduction of Angelica, it has moved faster, market trading volume has rebounded, and prices in production areas have slightly rebounded. Business analysis shows that the current price of Angelica may fluctuate slightly, but it should be difficult to rise back to the high price of 150 RMB/kg in the short term.

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