The onion market is approaching the finish line, which has consequences for the appetite to buy and the price level at which trade is carried out. What can be expected in the final meters of the season?
Every season has a start and an end. The 2021/2022 season will also end soon. Although the last meters towards the finish still have to be covered, the finish line is in sight. The hoped-for and desired revival towards €20 has not occurred this season. Growers who had gambled that the high export figure and the large volume that went to Poland would be a reason to make that move appear to have bet on the wrong horse.
Change in grants
The developments this week at the Goes and Emmeloord fairs were illustrative of this. In Goes, the price of coarse yellow seed onions held up, but fine onions had to lose an average of €1. In Emmeloord, both fine and coarse onions fell by an average of €2 and that turned out to be a sensitive blow or a clear signal that little positive can be expected for the rest of this season. This move is an ugly blow to the bill for growers who currently still have free onions in storage.
The trade - if there is such a thing and there are opportunities for it - varies between €12 and €15 per 100 kilos. The desire to buy is waning and in many cases it comes down to filling the gaps in certain sorting programs. In addition, test loads are used to determine where sales opportunities present themselves.
Few obstacles
Exports have developed particularly well this season. Corona fears have not played any tricks at all. The high container rates or the limitation of container capacity have also not really had an impact on onion sales. When export volumes declined after the closure of the Senegalese border, the pace was well maintained. Only one week showed a dip, but on average exports held up well.
Weekly average not unique
The weekly export average from weeks 1 to 22 is 19.586 tons and that is an excellent result. Yet, based on this result, the performance is not unique. Crop years 2009, 2017 and 2019 also came close with 19.584 tonnes, 19.415 tonnes and 19.562 tonnes respectively. The combination of a very good first half and a well-performing second half makes this season head and shoulders above all seasons. In the this week's podcast a few more words are devoted to this, with particular reference to the change in the onion market.
Bale prices
The bale prices remain unchanged this week for the triplets, coarse and supers. Only the bale price of the product increases by half a euro at the bottom, resulting in €19 to €21 per 100 kilos. An overview of the bale prices can be found in the DCA listing bale price onions.