The mood on the onion market is good. The growers are happy and the trade is also mainly positive. Another point of attention is the selling price of the sorted onions. It still lags somewhat behind the grower prices.
The trade in onion sets is almost over. Some of it still needs to be cleared, but if the grower has no option to irrigate, there is no other option - especially on the slightly heavier soils - than to wait for a rain shower. However, almost all onion sets have already been harvested. This means we are starting with a clean slate for the sowing onions that deteriorate rapidly at these temperatures. The European acreage of onions is a lot smaller this year compared to last year. Combined with an average or below average yield expectation, the positive mood among growers can easily be explained.
Traders and sorters are also largely positive. It is always pleasant to do business in a rising market. It takes some work for the trade to get their hands on the onions. The late onion onions have been destroying the early sowing onions for a few years now. That is absolutely not the case now. The working stocks at the sorters are generally small. Traders have quite a bit extra left over for onions that can be harvested and loaded at short notice, in short (almost) grown seed onions that can be irrigated. In this rising market, farmers are more afraid of selling too early than of missing out. There is also a danger in that. Some traders warn that growers should not forget to sell some of the onions. The mood is currently high due to the drought, but if significant rain falls next week, as some weather models predict, then that mood could easily be dampened.
How much stretch is there in the bale price?
De DCA quotation Bale price for onions has taken a step up compared to last week. The quotation ranges from €30 to €35 per 100 kilos. Most trade is done around €31 to €32 per 100 kilos. The current bale price is still largely based on onion onions, the latter of which went from €20 to €25 per 100 kilos of grower's prices. The grower prices for seed onions have now exceeded this and so the bale price will also have to make another step. Opinions differ as to whether this will work.
One group of traders says that growers dictate the market and the relatively high prices are not due to a huge demand for onions. According to that group, it remains to be seen whether African buyers are willing to pay higher prices. The other group emphasizes that you should not be too afraid in trading. The onions have been expensive before and then the demand from Africa also remained intact. In addition, the domestic harvest in Senegal is almost finished. The first ship in that direction is scheduled to arrive next week. "If the onions here leave the farmer below cost price, you don't hear anyone say, we will add a few cents. Now the tables have been turned, we can get something back," said a trader.