Onion prices have risen sharply in the last two weeks. However, this increase is not supported by export demand.
Consignments that can be picked up at a later date are particularly popular with packers and traders. The price increase is mainly based on speculation. It is expected that there will be few good batches left to process at the end of the season. However, demand from exports does not support the increase.
Local harvests Africa
The last published export figures (week 3) amount to more than 16.000 tons. With an export capacity that can process a maximum of 45.000 tons, things are now a lot quieter for packers. Exports are currently quiet. Demand from Africa is starting to decline as local harvests become increasingly available.
The fact that many onions have been exported to date means that many onions are now being purchased speculatively. Processors especially want to have access to nice batches of onions later in the season. This run has also caused day trading to rise.
All three regional exchanges posted a price increase this week. When the prices are compared, €16 to €21 is paid for Dutch onions. Moreover, the stock exchange committee in Emmeloord describes the market as fixed.
Bale prices are also rising
Bale prices have also risen this week. This increase is not yet in line with that of farm prices. It is difficult for processors and exporters to increase bale prices because demand does not support an increase. However, with rising purchasing prices, people are forced to raise bale prices. An overview of the bale prices can be found in the DCA listing Bale price Onions.