This week 28 should have been the week in which a match had to be found between the level of the bale price on the one hand and the demand for onions on the other. How did that work out? And can there be plenty of sorting from next week?
At the beginning of this week, it was still noticeable that supply and demand had found each other on the onion market. At the end of week 27, onions were already available for €35 per 100 kg, which had dropped to €30 at the beginning of this week. However, these price movements proved not to be tempting enough to attract buyers.
The sorting companies have sufficient stock from which the current demand for onions can be met. Stock that sorting companies are eager to get rid of, especially because they are being harassed by growers with contracts there. But demand is still only going moderately well. That became clear this week, for example, at the Goes quotation table. Based on the very small number of transactions made, no quotation could actually have been made. To provide an explanation of the course of the market, a quotation has been compiled.
Wait and see attitude
Growers with onion sets are noticing the wait-and-see attitude of traders more than last week. There are sorting companies available for turning away, but many growers are not ready for that yet. They want to hear a price and that is not an easy task given the current market insights for the onion trade. As the week progressed, growers' offers became more competitive.
In a number of places, sorting companies still have stocks of mostly Egyptian onions, purchased at the time for high(er) prices. These result in a financial burden for the sorting companies. It is conceivable that these parties will be deposed as a priority, but this does not always happen without a fight. Onion buyers view their purchases with a critical eye. The trade hardly pays attention to the supply of winter onions anymore.
Bale prices have now dropped to a price range of €25 to €30 and it is high time for the price to stabilize. Confidence can then be restored to the market, which can give trade a positive boost. A further search for demand and the enthusiasm of buyers for Dutch onions must also be taken into account in week 29.
Panama's political trump card
Current sales are exported to countries in Central America such as Jamaica and Trinidad. Panama, where a lot of lobbying has been done in recent years, seems to be playing the political trump card at the moment and is refusing Dutch onions for phytosanitary reasons. Only a limited number of containers were given the green light. There are no obstacles in the way of onions from the US.
Buyers in West Africa are also becoming more active, although large volumes are still lacking. Ivory Coast, Mauritania and Congo are currently supplied on a limited scale. Further sales are being achieved in Europe, with Great Britain placing more orders. Apparently the British are now running out of supplies. Poland remains a grateful customer - for this time of year - with relatively good volumes. The price level is falling due to competition from the now available own harvests.
In summary: more onions are sold at lower prices. Price stabilization is highly desirable to trigger buyers.
View here the most recent quotes.