Lower prices of Chinese cabbage, but...

The prices of Chinese cabbage in the Polish wholesale market have been declining for the second week in a row. This is a dynamic trend, as during this period, the average selling price of "pekinki" (ready-to-eat, in a carton) dropped by as much as 2 PLN per kilogram (0.47 EUR/kg), which is almost a 30 percent decrease.

However, this dynamic decrease has not yet brought the prices of "pekinki" in the Polish wholesale market back to the normal level for this phase of the season. The current decrease started from such a high point (average of 6.75 PLN/kg for cabbage "ready-to-eat") that there is still a long way to go before normalization, and the current prices can only be described as still significantly high.

This is clearly seen in the chart above. Currently, the selling prices of Chinese cabbage "ready-to-eat" in the wholesale market have dropped to the range of 4.00-5.00 PLN/kg (0.93-1.17 EUR/kg). However, this is still 91 percent above the average price from the previous five years. It is also 32 percent higher than the second highest average price in this comparison, which was 3.40 PLN/kg (0.79 EUR/kg) in the listing from August 30, 2023.

The drop in prices from such an extremely high level is not surprising. The weather in the second half of August was less hot, allowing for a slight improvement in cabbage supply. Furthermore, the high prices suppressed demand, so any improvement in product availability had to result in a stronger downward reaction in these conditions.

Looking at the long-term perspective, even with the inevitable further price reductions towards the end of summer and fall, low prices are not expected in the Chinese cabbage market this season. Most likely, prices will remain relatively high throughout the season. The question is whether the current average will manage to stay above last year's average?