Week 23 is the last broken working week of the 2016-2017 season. Although a day of outage fits in a period when the demand for onions is declining, there was quite a lot of sorting work both before and after Pentecost. The onion season is in its final weeks, but the outcome could go either way.
The onion market has the feeling that sales are not going smoothly, but in practice this is experienced differently. Quite a few onions are being sold, which in certain regions gives the feeling that onions may run out. Growers who still have free onions in such areas feel like King One-Eye.
They come from a greater distance
However, many onion traders did not become nervous at the beginning of the week (week 23), with certain cultivation areas becoming empty. The required onions are then supplied from a greater distance. At least, that is the reasoning. This is mainly to avoid having to make a statement by setting a "strong" price.
Bale price is the cause
According to insiders, the reason why the onions do not have room to rise is due to the bale price. In fact, there is no way to lose sales. It is frustrating for the grower with free onions who looks at the quantity of onions that are going away and the further decline in the actual stock still available.
This week there is a signal from the Dutch onion market. The odds in Goes and Emmeloord were on average unchanged. Based on current trade, Goes applied an equal plus and minus for the fine and coarse grading. However, the mood in Emmeloord became more positive due to the display of "Quiet".
Where is the offer?
The growers report later this week (week 23) that the trade is busy lobbying to see where the supply of onions is and at what price and conditions they are offered. This appears to clear the way for a possible final purchasing round. How much stretch there is in the price remains to be seen. If anything, the market is tending to become friendlier.
Busy sorting and packaging
Last week and also at the beginning of this week it was busy sorting and packaging onions. There was a boat moored off shore with an African final destination and there was also more demand for onions within Europe. Now that the departure to Africa is a fact, it is becoming a bit quieter among sorters and mainly Europe remains, with Great Britain as the largest buyer.
This phase of the season is reflected in the quality of onions. Some more setbacks are being observed, causing sales of field crops to Poland to increase (gross for net for 0 euros). Last week we already saw an increase in demand from former Eastern Bloc countries. This week that line has been continued further.