While onion sorters saw the order flow grow in recent weeks, this is hardly noticeable in the field crop trade. The opening of the border in Senegal is positive for the sale of the Dutch onion. However, many onion growers seem unimpressed by this.
As expected last week, the Senegalese border would soon open to Dutch onions. From Wednesday, August 16, it will again be possible to place Dutch onions on the Dakar quay. This marks the end of a period of approximately 7 months in which the Senegalese border was closed to Dutch onions.
tabaski
This allows shopping for the Islamic festival of Tabaski, which is held from August 31 to September 4. It is difficult to predict how the market will recover after Tabaski. In years when the festival fell in the later months of the calendar year, there was often a drop in demand for onions afterwards.
In the run-up to the opening of the Senegal border, Dutch onion exporters have already managed to ship large volumes in a short time. As a result, there is already instability in the market there. Setting a quota should prevent oversupply of the Senegalese market. In the coming week, the order books appear to be less full in the coming week. The demand for onions comes almost entirely from the African continent.
The range of growers is remarkable
For the current export demand, sorters receive onions from growers. There are still onion sets here and there that can be traded, but the trade seems to have little interest in them. Prices are under pressure due to the abundant supply. In Goes, the quotation for onion onions was reduced on average by €1,50 to €9 to €11 per 100 kilos.
In Emmeloord, the quotation of seed onions was also subject to a downward adjustment for onions that can be delivered immediately. For the 30% coarse sorting this was €1,50 and for the 60% coarse sorting €1,25 per 100 kilos. The lackluster mood makes it clear that supply exceeds current demand.
For onions that can grow, the quotation remained unchanged this week at €5 to €6 for 30% coarse and €6 to €7 per 100 kilos for 60% coarse. Onions that have Indonesia as their final destination do not fall under the aforementioned quotations. These trade at higher price levels.
Willingness to do business is special
There are enough onion onions for the transition to the harvest of seed onions, with the result that independent growers with onion onions have difficulty getting a merchant enthusiastic. Seed onions are more available every week, so the trade has to choose the onions. This is a difficult situation for creating any mood.
The willingness of onion growers to do business remains special. The ending of the old season is apparently still too fresh in the minds of many growers. The 2016-2017 season did not have a good financial outcome for every arable farmer, which is why people are looking for more stability. The increased area of sowing onions has a negative effect on this.