Onion market acclimates from chaotic period

The onion market is acclimatizing after the chaotic recent weeks, in which onion prices have been lifted to a higher level week after week. The onion market has now entered calmer waters and is waiting for a new direction to be taken.

Onion prices have been on the rise since the start of this season. During the first months of this season, many speculators have been active on the onion market. Because these speculators have bought many onions above the stock market prices, the market has made significant strides. In addition, there have been a number of processors who have felt compelled to keep up with the hectic pace of the onion market in order to take a position.

More peace
In the past two weeks, the market has calmed down and onion prices have stabilized. Speculators and processors have sufficient position and are now waiting for the market to do its work.

Exports are also less fanatical than in previous weeks. Exporters have large outstanding balances with foreign importers and are therefore taking it easy, the risks are enormous in a year like this. However, the demand for Dutch onions is there. There is a shortage of onions throughout Europe and the volumes that can fill these volumes will not be available elsewhere in the world.

Bale prices stabilize
Bale prices are stabilizing just like farmers' prices. Where it was initially thought that the bale prices for the 60-80mm grading would make the step towards €40, this has not happened and the bale prices for this grading remain at €38. The bale prices for middle sorting and triplets also remain at the same level. For the 45/65mm grading, €32 to €33 is paid in the bale and €50 to €70 for the 36/37mm grading.

Mood is price-bearing
The regional fairs in Emmeloord and Goes put a minus on the plate this week for fine and medium grade onions. In Emmeloord, the stock exchange quotations for the below 30% coarse quotation and the 30% to 60% coarse quotation indicated a negative difference of €0,50 compared to last week. The stock exchange quotations in Goes indicated a negative difference of €1 for both sizes.

The stock exchange committees in Emmeloord and Middenmeer changed the mood of the onion market to price-bearing this week. A price-holding mood means that supply is less than or equal to demand.

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