The Dutch onion market makes a despairing impression. After the upswing, the market seems to be back on track again. It is not the case that onions are not sold and are leaving, but the market lacks drivers that can provide more sales of onions. The drop in demand has direct consequences for the onion price.
Yellow onion prices fell on regional exchanges this week and the mood remained "Bland". The bottom of the fine grading went back to 0 euros and the top was set at 4 euros at the beginning of the week (Goes), before dropping back to 2,50 euros per 100 kilos (Emmeloord) later in the week.
Onion quotations in the minus
There is some frustration in the field about the development of onion prices in recent weeks. When demand picked up for a while, the market turned out to be set up in such a way that it was virtually impossible for the trade to buy onions at a price on which any margin could be achieved. Now that demand is shrinking, some people are working with relatively (too) expensive onions.
Short-lived revival
The increasing demand was the result of Brazil knocking at the Dutch counter, Africa having a boat moored on shore and a short working week due to King's Day. The Brazilian demand for onions has now collapsed/fulfilled and there are full working weeks, which means that the Dutch onion market is back to square one.
Another boat will be loaded next week for a number of African destinations. The eagerness to sign up for this is great, in any case greater than the demand. That means there is still an appetite for sorting work. There is some sales within Europe and that is broadly speaking.
Outcome uncertain
How the final period of the season will proceed remains uncertain. Time is ticking and is increasingly becoming an enemy at this stage of the season. As the temperature rises, it will become more difficult to store the onions. The supply of onions is expected to increase in the coming weeks.