The onion market has been under pressure for several weeks. This pressure is fueled by a number of aspects. Can good exports turn the tide?
It cannot be due to exports this season. Good figures have been shown from the start of the season. The latest figures (week 45) are also strong: a volume of 28.760 tons of onions. Good export figures are usually the driving force behind good prices. Unfortunately, this is not the case at the moment. The lack of good prices is mainly maintained by fear.
Atmosphere of fear
As mentioned, the tenor in the market at the moment is fearful. Everyone knows what happened after New Year's Eve last year and other crops are also not doing so well this season. The onions should therefore at least generate some money this year.
An important aspect is that there are many parties with quality problems this season. The consignments are currently widely offered to sorters and traders. Many of these onions are offered at dump prices, so that some money can be made on the onions. All this supply ensures that sorters and traders do not have to enter the market; the current supply is sufficient for most.
Another aspect is that good exports go quite unilaterally to Africa. Less stringent requirements are imposed on these onions than onions that go to destinations in Central America, South America and Asia. Consignments that are of good quality, but are slightly less attractive in color or size, are therefore quickly offered. There is fear that these onions will be difficult to sell after the New Year. This means that onion prices remain under pressure.
Scholarship awards
The regional fairs show that fine onions in particular are under pressure. In Goes and Emmeloord, prices for fine onions dropped by a quarter. No changes can be seen in the quotations for large onions.
If we compare all 3 regional fairs, the price for fine onions is €4,50 to €6 and for coarse onions €6 to €7,50. The bale prices this week remain at a comparable level to the previous weeks.
Optimism
The prices for lower-quality onions are, as written, under pressure. Due to strong exports, many of these parties are being eliminated at a rapid pace. When these parties are out of the market and supply is less depressed, the onion market may have a chance to catch its breath. There is optimism in the market for parties with good quality onions. The prerequisite is that the right destinations come into play.