Tension in the organic markets is starting to rise. The season is not over yet, but with the lack of demand for free product, you would think that growers are more and more willing to lower the price. Nothing is further from the truth, because most of them just stick to their prices.
The few buyers who do want to buy, barely get in. For example, there is some demand for onions for the fresh market. Insiders speak of a German trader who wants to capture a decent volume, but not at the prices currently being asked. "If you need onions, you have to pay," reports a trader. And then to tell them that Egyptian onions will also arrive in about five weeks. "At very different prices." Apparently it can go both ways.
However, the growers remain optimistic. It remains exciting and it may well be that even higher prices are seen this season. At the moment there seems to be some downward pressure on prices. According to insiders, this is mainly due to the lack of demand in combination with the large amount of free onions. The DCA Indication prices for onions are falling slightly across the board, by about €2. This means that the quotation of >30% roughly amounts to €44 to €47 per 100 kilos. The coarser onions are slightly below this, from €42 to €45 per 100 kilos. There is little trade in free onions and the mood is weak.
Mood in carrot market is declining
In the meantime, the mood in the carrot market is getting less and less and some are now opting to sell their organic carrots in the regular segment. That is something that obviously hurts, but for a number of people it is the best choice economically at the moment. The demand for organic carrots is simply not going away. Or should this be 'not yet'?
The answer to that question determines how we act. Sell or wait. The price level in the market has changed little in the meantime and is therefore about the same as the market for regular carrots. The DCA Indication Price for organic carrots will remain unchanged this week at €25 to €30 per 100 kilos.
Little demand for table potatoes
There is little more to say about table potatoes than that there too the demand is not really rising and that the growers are reassured that they can store longer. So they are waiting to sell free potatoes. It has been this way for weeks now, although the tension does increase as the weeks go by. There is little need on either side to do anything about prices. "But this will change in a few weeks," says an insider
The market is currently trading unchanged for the umpteenth week in a row. Something that also applies to conventional table potatoes. The DCA Indication Price for table potatoes remains at €25 to €28 per 100 kilos. This applies to floury and waxy potatoes in the size 35-65 millimetres. The mood is calm.
A clear explanation of these indication prices and how they are established can be found here: the organic quotations of DCA-Markets.
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