Clouds won't budge on the onion market

It is a special phenomenon when sales are good, but price formation is under pressure. This week, the regional stock exchanges were also clear in their view regarding the pricing of onions. The odds fell and the mood was somewhere between 'calm' and 'bland'. 

From conversations with traders it is clear that growers are still willing to make offers and that little effort is made to obtain onions. There are signs that a number of sorting companies need to travel more to obtain sufficient work inventory, but there does not appear to be a change in mood.

Sales focused on Africa
Onion sales remain one-sided and are focused on Africa. New customers are difficult to find and, in terms of volume, they are not making enough progress. Unilateral sales also play a role in Belgium. More than in the Netherlands, Belgian growers have to deal with disappointments, especially poor quality onions. The compelling offer is considerable, with gunshot being the main cause. 

Furthermore, there are also major differences visible between the parties. This is the result of a predominantly dry growing season. The result is that there are many fine lots and that many growers go home with a meager gross yield per hectare.

Will the sun come out?
Despite the cloud cover over the Dutch onion market, a number of traders can clearly see the sun appearing. "Let it be that onions are brought forward and contracts are collected earlier. Then we will no longer be bothered by this and hopefully the onion market will have the opportunity to calm down," the reasoning goes. 

In the second half of the season, sales to Eastern Europe are mainly considered. For example, Polish growers are faced with many harvest setbacks due to excessive rainfall and the gross yields within Europe are on average below the level of last season.