On March 7th, the Chinese herbal medicine index was 2,364 points, a decrease of 20 points from yesterday, a decrease of 15.51% from the highest point of 2,798 points in the cycle (2023-08-10), and an increase of 142.46% from the lowest point of 975 points on November 25th, 2019. (Note: The cycle refers to June 30, 2019 to present)

According to the price monitoring of SunSirs, in the 10th week of 2024 (3.04-3.08), there were 2 products that rose, 2 products that fell, and 4 products that rose or fell to 0 on the Chinese herbal medicine price list. The main rising commodities include Angelica (+0.47%) and Codonopsis pilosula (+0.28%); The main commodities falling are: Ophiopogon Japonicus (-20.86%) and Forsythia (-1.46%).

According to the monitoring of the commodity market analysis system of the SunSirs, the production of Ophiopogon Japonicus in Santai, Mianyang, Sichuan has experienced a new period of fluctuation and decline, with transactions first rising and then falling. A large number of new products have been launched, and the price of new products from their production areas is between 85-88 RMB/kg. The market price of Sichuan Ophiopogon Japonicus is between 90-120 RMB/kg, while that of Hubei Ophiopogon Japonicus is around 80-105 RMB/kg, a significant decrease of 30% from last year's high.

The real estate of Santai Ophiopogon Japonicus in Mianyang, Sichuan has continued, with a fresh purchase price of 9.5-12 RMB/kg. Due to the continued stable price, foreign merchants have entered the market one after another, leading to many merchants coming to purchase. The current transaction price for medium original unified goods is between 85-88 RMB/kg, while that for high-grade original unified goods is between 90-95 RMB/kg (excellent), and that for medium and lower grade goods is around 85 RMB/kg.

In 2023, the price of fresh fruits in the Sichuan Ophiopogon Japonicus production area was between 12-16 RMB/500g, which is quite high for wheat farmers. The income per mu is between 30,000 and 40,000 RMB. Excluding 10,000 mu of investment, the net profit is still very considerable. Therefore, the enthusiasm of farmers is high, and the planting area has expanded. Therefore, the land area of Sichuan Ophiopogon Japonicus in 2024 is larger than that of 2023. On the other hand, there were no extreme weather or natural disasters during the growth period last year. This year, the fresh grains were relatively full, and the yield per mu increased compared to last year, mostly between 300-350 kg/mu, with a high yield of 400 kg/mu.

The increase in planting area and yield of Sichuan Ophiopogon in 2024 has led to a higher output of goods than last year. With the deepening of production, businesses in the production area are expected to produce between 12,000 and 13,000 tons. This year, the production of new goods for Sichuan Ophiopogon Japonicus is high, and the unit yield has also increased. The decline in new production prices is an inevitable trend.

After the new production of Sichuan Ophiopogon Japonicus, there is a trend of high opening and low closing, and the market is in a cloudy state of change. Merchants are cautious in their approach. Although the increase in production of Ophiopogon japonicus this year is a foregone conclusion, the inventory of Ophiopogon japonicus itself is not abundant, and the demand is constantly increasing. The market price will not be lower than the planting cost. Currently, the price of Ophiopogon japonicus has dropped to the beginning of last year, and the SunSirs believes that the market for Ophiopogon japonicus may operate steadily in the short term.

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