According to the monitoring of the Commodity Market Analysis System of SunSirs, Angelica and Codonopsis pilosula have surged again this month, and the origin market is once again hot. Currently, the unified price of Angelica in the origin is between 160-170 RMB/kg, an increase of 36.97% compared to the beginning of the month and a year-on-year increase of 293.72%; Codonopsis pilosula is priced between 150 and 160 RMB/kg, an increase of 37.48% compared to the beginning of the month and a year-on-year increase of 188.68%. Due to the high prices of Gansu varieties of Codonopsis pilosula and Angelica, many merchants have shifted their investment targets to the low-priced Astragalus. With the active purchasing of many merchants, prices have slightly increased. Currently, the unified price of Astragalus in the production area is between 25-27 RMB/kg, an increase of 9.65% compared to the beginning of the month and 58.23% year-on-year.

Bozhou market: The price of Angelica has continued to rise in recent days due to the origin, and the market price has frequently hit a new high in history. At present, the price of bulk goods in Bozhou market is about 170 RMB, and the price of all pieces of a tree is about 190 RMB, and businesses have temporarily turned to wait-and-see treatment.

Anguo market: Angelica is popular in the production area recently, and the market continues to hit new highs. Most businesses hold a wait-and-see attitude. The price of Angelica in the market is between 170-180 RMB. It is expected that the market will remain unstable in the later period.

Angelica and Codonopsis pilosula are commonly used domestic bulk Chinese medicinal herbs, with a growth period of 2-3 years. They are nurtured and transplanted once a year, and harvested from late October to early November each year. They can be harvested when the plants wither and turn yellow. Angelica and Codonopsis pilosula prefer damp slopes, and drought is the main cause of reduced yield.

In recent years, the planting area of Angelica has been decreasing year by year, and due to the limited use of land resources in the old production areas of Gansu, the vast majority have not implemented rotation tillage operations, leading to an intensification of plant diseases and pests in recent years, with serious root rot and dead seedlings. Since 2020, in order to stabilize food production in Qinghai production areas, the government has demanded "returning medicine to grain", limiting the expansion of the scale of planting medicinal materials, resulting in a significant decrease in the planting area of Angelica that year.

In addition, the low temperature in spring last year and the high temperature and drought in summer have further affected the yield of Angelica. According to statistics, the production of Angelica in 2021 is about 36,200 tons, and the production of Angelica in 2022 is about 35,100 tons.

Angelica has a huge demand for rigidity, and is also one of the major varieties of traditional Chinese medicine and medicinal and food homologous varieties with a large production, dosage, and use range in China. According to statistics, the demand for Angelica in 2021 is about 32,700 tons, and in 2022, it is about 33,000 tons.

Due to factors such as drought, high temperature, and dead seedlings last year, Angelica seedlings have been severely affected and have high prices. This year, the planting area of Angelica is not large.

Last year, Angelica was reduced in planting and production. Coupled with strong market demand, Angelica inventory was greatly digested. In 2023, due to restrictions on seedlings, the area for new expansion was not large, and there was sufficient confidence among buyers. In addition, new funds were constantly entering the market, causing Angelica prices to continue to rise and reach new highs. At present, the price of Angelica has reached a historic high. If there is no new positive news, SunSirs analysis suggests that in the short term, the market of Angelica may still remain high and firm, making it difficult to continue to rise significantly.

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