Senegal comes with onion quota

Trading has been quiet in recent weeks, but that picture has now changed. It has been very busy in the north of the country this week. The realization that onions must be purchased now, before a competitor buys them, seems to have come. These are parties with some degree of rudeness. These onions are mainly located in the north of the country, which is why trade is concentrated in this area.

€25 has been paid for the onions for a number of weeks. Initially, this amount was only paid for excellent lots and subsequently for onions with a coarseness of just above 60%, but since a number of days a percentage of 60% is no longer a requirement for the amount of €25. The requirements regarding coarseness are continually being adjusted, which means that prices for finer onions are also on the rise.

Senegal sets quota
Onion prices are rising across the board. This has a number of causes: first of all, it appears that the export currently running well. The fact that the border with Senegal has been opened has contributed to this. However, on Thursday, September 6, the country announced that it is setting a quota, which means that 1 tons can be exported to Senegal until January 2019, 90.000 (from September 1, 2018).

Onions loaded before September 1 do not count towards the quota. Although not all export figures are yet known, it is clear that the quota will mean that fewer onions will go to Senegal this season until January 1. However, in addition to Senegal, Ivory Coast is also fanatically purchasing Dutch onions this year. 

Another reason for the rising prices is the fact that bale prices have made good progress this week, making trade more active on the onion market. Finally, it is becoming increasingly clear that yields will be significantly disappointing this year. Even for parties that look good, yields are disappointing.

Stock market prices skyrocket
The positive feeling is also clearly visible in this week's odds. All 3 regional fairs are making a big step up; in particular the 60% large onions at the fair in Emmeloord are shooting up. The quote shows a price range of €25 to €30. It yields an average price of €27,50, putting the price €15 above the 5-year average.

The comparison with the year 1976 has often been made this summer. In that year, the onions were sold in week 36 for 70 guilders, which amounts to €31,80 (€1 is 2,20 guilders). The quotation on the Emmeloord stock exchange reached its highest point on November 80, at 11 guilders.

(Text continues below the chart)The quotation is well above the 5-year average.

The quotation for 30% to 60% large onions also increased significantly. The quotation is €20 to €25. However, in Goes and Middenmeer the odds for this sorting are slightly lower. In Middenmeer the quotation is €17 to €20 and in Goes it is €18 to €22. The quotation in Goes averages €36 for week 20. 

The 5-year average for 30% to 60% large onions for week 36 is €11. However, the increasing prices are not for everyone. Yields are so poor in some places that many growers cannot benefit from the high prices.