Onion market is going out of the year with a bang

Due to the large supply of onions in the Netherlands, trading parties adopted a wait-and-see attitude during the first months of the 2017/2018 season. There was enough choice to choose beautiful and/or cheap onions from the selection. At the end of 2017, the trade has... more active position taken by reporting to the onion market more often.

In the week before New Year's Eve there were even fireworks on the onion market. For deliveries in January and February, onions were purchased with double digits before the decimal point. Also in the new year, trading took place at prices above the current stock exchange quotations. A number of trading parties appear to be choosing positions for the coming period.

January is traditionally a wait-and-see month. It is a period in which a shift can often be seen in export destinations. At the end of January there may be more clarity about the destinations that have reported or will report on the Dutch market. This makes the contours of the market more transparent.

Some traders have clearly taken a position by buying onions above the stock exchange quotations, while the majority of traders have stepped on the brakes slightly in the first week of 2018. This week, trading was less active than during the last 2 weeks of 2017. We are exploring how the market will move in the coming weeks.

Regional fairs
It is clear that the market is rising. A slight increase can be seen on all 3 regional stock exchanges. Goes quotes €7 to €9 for large onions. This is an increase of €0,75 compared to week 51 (last week there was no listing on the Goes stock exchange). With an increase of €0,25, prices were more cautious in Emmeloord and Middenmeer.

If we compare all 3 regional quotations, the fine onions are quoted from €5 to €7 and the coarse onions are €6 to €9. Bale prices have been at a constant level for a number of weeks. While transaction prices have been rising in recent weeks, the bale price is not yet moving along. The result of this is that margins become smaller.

(Text continues below the chart)Bale prices show a relatively stable trend.

Poland at the market
Poland entered the Dutch market at the end of 2017. This means there is a market for onions that are at the lower end. The associated prices are between €1 and €3. These prices do not last, but they do ensure that there is a destination for onions with some quality problems such as shot.

Due to rising stock prices and a bottom in the market, the upward trend appears to have been taken. The contours of the market will become more visible in the coming month, providing more clarity about the price level in the coming months.