How big is the Brazilian pinprick, which in week 16 caused a change in the mood on the Dutch onion market? Many are concerned with this question. The effect of an increasing demand is often caused by a shortage of work stock. Renewed demand is thus translated one-on-one to the owner of onions.
Speculators smell opportunities
The "ease" with which growers put onions into the hands of the trade in recent weeks has in any case resulted in new speculative purchases. The belief that the Dutch onion market seems to have turned definitively and is thus ending a gloomy period, encouraged speculators to buy onions. This makes the desire to buy appear greater than it actually is.
Interpretation of the onion market
It remains difficult to give a good interpretation of the Dutch onion market. There is quite a bit of noise on the line. Growers report high bids. It is not always clear whether they were ultimately realized. Stories about high prices (relative to all developments in recent weeks) also do not always appear on transaction lists or are demonstrable in practice. That creates some friction in the market.
For example, some growers are banned from disclosing their transactions in order not to hinder the trade too much. It turns the Dutch onion market into a true shadow play. Where the trade was well in control, the grower seems to be aiming to take over that position. That seems to be partly successful.
Burning questions
It is difficult to indicate what development awaits the Dutch onion market. How big is the actual onion stock? What is actually paid? Will there or will there not be a revival in demand in view of Ramadan? So there are plenty of questions. When a grower lives a short distance from the buyer, up to 4,50 euros per 100 kilos have been paid in the southwest.
Exceptional
This week the difference in regional odds is remarkable. For example, the stock exchange in Middenmeer recorded a quotation of up to 26 euros per 2 kilos at the beginning of the afternoon on Wednesday, April 100. At the end of the afternoon, the onion quotation committee of the stock exchange in Emmeloord recorded a price of 5,50 euros per 100 kilos at the top, a rarely seen situation.
In the polders, onions (reportedly the mother's finest) are traded for 7 euros per 100 kilos. This illustrates the lack of clarity in the Dutch onion market. One commission agent reports that business can be done at good prices, while a competitor notices great reluctance among buyers, who only buy what is absolutely necessary and then adopt a wait-and-see attitude.
On the ticking rope
Onion owners would do well to keep a close eye on the onion market. No one can give guarantees whether this revival will be here to stay. Both options, a further increase in prices or that's it for this season, are possible. We are working hard behind the scenes to raise bale prices to a higher level, but that process takes a lot of time. On average, medium and large onions are sold for approximately 8,00 euros per 100 kg. There are virtually no outlets for triplets.