The carrot trade ends the year without a spectacle. Traders and rinsers are united and call the market tame. The trade in carrots from storage is very difficult. Prices between grower and buyer are too far apart, so that little or no business is done.
The supply of carrots is starting to dry up further and further. Last week's frost caused considerable damage to the carrots that are still growing, especially in the north of the country. There has been less frost in the southwest, but the combination of cold and a long wet period means that the quality of the carrots is also declining rapidly.
Trade is stuck
Processors should make the switch to carrots from storage. That just doesn't go very smoothly. The current moderate prices are the cause of this. Buyers of rinsed carrots have become accustomed to the low prices so far this season and are not prepared to take a step up. Due to sufficient supply in Eastern Europe, for example, there is also no need for this. Washers are therefore forced to work with cheap carrots. For the ex-field carrot, we were still able to obtain product for a somewhat suitable price.
This is different for the trade in carrots from storage. Growers (and flushers with their own stock) have incurred the extra costs for storage and storage and need a significantly higher price to avoid spending a lot of money. Because we are still early in the storage season, the carrot is held. All parties agree that the price must increase to stimulate trade. The only question is how to achieve that.
Headlock
The DCA Indication Price for B-carrot this week is €5 per 100 kilos and for the C-carrot at €4,50 per 100 kilos. It should be noted that the market is at a standstill at the moment. Good field crops are still traded for these prices, but carrots from storage are actually not available for this. Suppliers and buyers of carrots from storage keep each other in check. For example, if a grower offers €5, there is virtually no grower who will accept it. On the other hand, if a grower offers for €10 or €12, there are almost no buyers to be found. Occasionally there are outliers in both directions, but objectively neither is a realistic representation of the market, there is too little trading for that at the moment. That is why we are sticking to the (limited) ex-land offer this week.