The onion market has been on the rise in terms of quotations in recent weeks. What is the reason for this and what is the perspective?
If there was anything missing last fall, it was the ability to set a mood. And that was not the first time, while exports have been formidable. To top it all off, CBS's estimate of last autumn's harvest estimate turned out to have been seriously wrong. It was known that the trade actually did not see the opportunities for this season, which made the season seem written off from the start.
What's wrong?
Nevertheless, there was a feeling among growers that something was wrong. It couldn't possibly be that another record export figure was written and the market couldn't find more mood. Reinforced by the above reasons, there seemed to be an upward trend due to a shortage of work stock at the sorting companies. It suddenly turned out that there was more prospect in the market than previously thought possible, as evidenced by the receipts that were made for delivery in the months of March and April.
Waning desire to buy
This week it seems that the purchasing spirit of the trade has dropped somewhat compared to last week. Now that onions have been purchased for both the short and slightly longer term, more movement and a new revival will have to come mainly from the export market. The asking price of growers for delivery in March is roughly €14 participation or €15 for fixed money. And the trade doesn't seem to be interested in that at the moment.
Switching takes time
Exporters report that exports are slow. This is not unusual for this period of the marketing season now that the onion market is in the transition from more sales to Europe and less overseas. Due to the revival of field crop prices, it is desirable that bale prices can rise along with it. But due to limited demand, this is faltering, putting pressure on margins and leaving packers in a bind. The bottom end of the market remains in good shape due to demand from Poland, which offers prospects.
Fixed mood
The development of grower prices produced a positive picture on the regional quotations. They went up for all sizes of yellow onions with an average fixed vote. From this steady mood it can be deduced that growers are not being fooled at the moment and are closely aligning supply with demand from the trade.{{dataviewSnapshot(2_1644566318)}}
An overview of the bale prices can be found in the DCA listing Bale price Onions in the database of Boerenbusiness.