Long-term keepers hope for better times

The export figures are again something to write home about this week, but mainly focused on: Africa. The 5 largest African purchasing countries account for half of the export volume and together they already purchased 23% more onions than in the same period last year. 

An increase in volume has not only been seen in the top 5 of the most consuming African countries, but in almost all African countries that are served, there has been a plus in export figures. The African market is currently being pushed a lot, but will eventually become saturated. The entire onion sector is wondering what will happen when this market is saturated.

Fairs
One still prevails anxious atmosphere in the onion sector. The causes have been identified in previous weeks. What will happen to onion prices if a large part of Africa disappears? Growers who have lower quality onions are particularly hesitant about this period. 

This is unfortunately reflected in the prices at the regional fairs. In Middenmeer, prices for fine onions dropped by €0,50 per 100 kilos. Prices for large onions are falling at all three regional fairs. In Emmeloord and Middenmeer with €3 and in Goes with €0,50.

If we compare all 3 regional fairs, the price for fine onions is €4,50 to €6 and for coarse onions €5 to €7,25. The stock market prices over the past few weeks.

It is positive that the mood in Emmeloord has changed from dull to calm and that Middenmeer is also experiencing a calm mood. This means that supply is greater than or equal to demand. The work stocks of sorters and exporters are shrinking every week. That is why a new purchasing round is expected in the short term.

Bale prices are coming under more pressure and are dropping slightly at the top. The bale prices now look as follows:

Is there a market for good parties?
Fortunately, there are still plenty of onion consignments in the Netherlands that are suitable for destinations outside Africa. The mood among growers with such parties becomes slightly friendlier. It is thought that once the bad lots have been cleared away, prices will automatically improve.

Then the right destinations have to come into play. The market in Asia currently seems comparable to previous years. There are opportunities in Central and South America due to poor harvests, a reduction in acreage and all the hurricane violence that has occurred this year.

In Europe the stories vary. Important buyer Great Britain is purchasing fewer onions, but there is good hope that Eastern Europe will enter the market this year. This can create a bottom in the market. However, the onion sector remains difficult to predict and the mood can change in the blink of an eye.