DCA-Markets, part of DCA Group, presents 13 new quotations for yellow onions today (Wednesday 2 November). It concerns the DCA Spot Price Onions (DCA-SU) and the forward prices for onions (DCA-SUF). Every Thursday new quotes are calculated and published on Boerenbusiness.NL.
DCA-Markets has announced this. The DCA Spot Listing Onions is a weighted average value for yellow onions, based on the stock exchange quotations of Goes, Middenmeer and Emmeloord. It is a from-to price, where the lowest and the highest price is mentioned. The spot price of onions is determined during the stock exchange season, in other words the period in which the regional stock exchange quotations are compiled.
The spot listing is in line with DCA-Markets' strategy to expand the markets for agricultural products to make more transparent, explains René van 't Riet, market developer of DCA-Markets in a statement. "We are now doing that again by calculating a DCA spot price for yellow onions that is representative for the whole of the Netherlands and therefore decisive in Europe."
Term structure of onions
DCA will also calculate the forward prices for onions on a weekly basis based on the calculated spot prices. The DCA-SUF shows in one overview the market for delivery later in the season, which is what DCA calls the term structure of onions. This means that the company calculates a price for all remaining months in the season for the delivery of onions on the last Thursday of that month.
This means that on top of the spot price, a storage fee of €0,175 per 100 kilos is applied for each week remaining until delivery in that forward month. "The parties have something to hold on to this and can decide to settle mutually at this independent price," says Van 't Riet.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
