Inside: Onion Market
Is the export for medium grade onions coming to a standstill?
What is the influence of the (largely) disappearing of Africa as an export destination? There are plenty of destinations for coarse onions, but it is currently difficult to find a destination for fine and medium grades. This has repercussions on prices.
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Choose the subscription that suits youIt was a relatively quiet week in the onion sector. The reason for this is the absence of export destinations for medium-grade onions. Now that Africa (read: Senegal) is disappearing as a destination, other destinations are hoped for. These are not for the taking and in the short term there is no prospect of new export destinations for medium-grade onions.
Prices are under pressure
Because demand for medium-grade onions is falling, prices are currently under pressure. The export of large onions is continuing well, but because there are no sales for the medium grade, these prices are also under pressure. After all, a batch with 60% large onions also has 40% onions with a medium or fine grade. Since these grades are difficult to export, the price of lots with large onions is also reduced.
The quotations on the regional stock exchanges reflect the pressure on prices. In Goes, the record remained unchanged on Tuesday, January 23, but in Middenmeer and Emmeloord, a minus was recorded for both fine and coarse onions on Wednesday, January 24 and Thursday, January 25.
The combined price range of the regional fairs for fine onions is between €5 and €7 and for coarse onions between €5,5 and €10. Traders expect the move downwards to continue in the coming week. The mood in the market will therefore be calm.
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The quotation for seed onions (60%) shows a small decrease in week 4.
Bale prices
The lack of export destinations for medium grading also puts pressure on bale prices. Only the price for the 80 millimeter upwards remains stable with prices between €19 and €20. There are still plenty of destinations to be found for this rough sorting. The other grades are under pressure due to the loss of export destinations.
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The bale prices up to and including 4 of 2018.
Dutch exporters are currently looking hard for new sales destinations. The coming period will be described as quiet, but once suitable destinations have been found, this mood can change again.