The first onions of the 2020 growing season have been traded. However, the demand for these onions is still weak.
The first winter onions of this season have been harvested in recent weeks. Trade in this new harvest has yet to get going. The demand for Dutch onions is generally moderate during this period. The current demand mainly comes from African and European destinations.
Bale prices matter
The bale prices of winter onions usually start at a high level, last week bale prices were above €40. Because there is little sales at the moment and processors do not want to be stuck with winter onions for too long (because the quality does not allow it), bale prices are falling rapidly. This week €29 to €35 was paid in the bale (depending on the destination). It is common for bale prices to drop at the start of the season. Bale prices are expected to drop further until a stable level is found.
When bale prices are at a stable level, processors and traders will continue to have more confidence in buying onions from the farmer. Trade is now taking place, but most buyers want to be on the market for a short period of time with their purchases, so they are currently purchasing few additional lots.
First listing of spring onion sets
The regional stock exchange in Goes released two quotes this week. For winter onions they quote €23 to €25, which means a decrease of €2 compared to last week. In addition, the stock exchange committee in Goes published a quotation for spring onion sets for the first time in recent months. This stock exchange listing amounts to €18 to €22. The stock exchange committees in Middenmeer and Emmeloord have not listed.