DCA-Markets is adjusting the so-called spot and forward prices for yellow onions for the current trading season 2021/22. With this, the so-called price reporting agency, part of DCA Group, wants to match the calculation of the quotations as much as possible to current practice.
The DCA Spot price on onions is a weighted average value of yellow onions, based on the stock exchange quotes of Goes, Middenmeer and Emmeloord. It is therefore a very good indication of the onion price on the daily market, says René van 't Riet, manager of DCA Markets, in a statement. The DCA Spot price on onions is determined every Thursday. It concerns a from-to (high-low) price. The weighting of each listing is done by looking at the areas in that area. As for the 2021 harvest, this weighting is adjusted every year to the acreage figures of the season. The current spot price ranges from €11,00 to €12,00 per 100 kilos.
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The DCA forward price of yellow onions is calculated every week based on the spot prices. This is done, explains Van 't Riet, by simply adding the storage costs to the current price. These have been increased for this season from 17.5 cents to 18 cents per 100 kilos. This means that on top of the spot price, a storage fee of €0,18 per 100 kilos is applied for each week remaining until delivery in that forward month.
DCA-Markets has been publishing the forward prices for the months October 2021 to May 2022 since last Thursday. For example, the forward price for onions collected at the end of February is currently €14 to €15. And so the price for April is €15,75 to €16,75. "The DCA Spot Price is representative for the whole of the Netherlands and therefore decisive in Europe," says Van 't Riet. "The forward prices are determined on the basis of this spot price, which shows the market in one overview for delivery later in the season. This offers the onion market something to hold on to. The parties can decide to settle mutually at this independent price."
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