Onion growers don't let go of their onions easily, so prices have made significant strides in recent weeks. In addition, exporters have managed to increase bale prices as well. Are buyers of Dutch onions willing to go along with the higher prices?
The onion market is currently characterized as a permanent market. However, the supply is smaller than the demand. Due to the rising prices in recent weeks, many growers have confidence in the market. It means that they do not want to sell their onions now. In the meantime, the trade is trying to get hold of large onions, which means that there is more demand for lots with a relatively small percentage of large onions.
The mood among growers is expected to remain steady in the coming weeks. The forced supply seems to have largely disappeared from the market and more than half of the onions have now been harvested. It is no longer a secret that the yields are disappointing. When all the onions are in, the market will again want to choose a direction. It will then become clear whether prices will stabilize.
Exports are stagnating
De onion export seems to be stagnating a bit. Dutch onion buyers purchase onions in lower volumes. In addition, the exporters managed to make a significant step in bale prices last week. The sales destinations have to get used to the higher prices and therefore purchase more carefully. There are also significant stocks at many destinations that must first be cleared.
Top of onion prices are stabilizing
Prices across the board have taken a significant step up in recent weeks. When all 3 regional fairs are compared, €30 to €60 are paid for the 20% to 26% large onions and €60 to €25 for the onions with a large size of 30%.
The top end of €30 (for 60% large onions) appears to be the ceiling for the ex-country quotation for the time being. Processors and exporters currently do not want to go along with higher ex-country prices, partly due to the cautious attitude of the importing countries.