Grower is glowing with confidence in onion market

The planting and seed onions follow each other nicely and do not get in each other's way. The demand for onions is good and traders have to work hard to get onions from the farmer. The drought in recent weeks has made it impossible to harvest and some companies are starting to run out of work inventory. The (local) rain this week has changed that. The last onion onions that cannot be irrigated are now uprooted, this also applies to the seed onions. It is expected that the working supplies can be replenished next week.

High price, high risk
The mood on the onion market is being further boosted by speculators who want to benefit from the rising market. Some insiders are somewhat concerned about the relatively high prices at the moment. A lot of working capital goes into the stocks and onions that are on their way from the grower to the final destination. The farmer has not been used to these prices for some time. He sees serious amounts on the statement and wants to have the money in the bank on time. On the other hand, buyers from certain countries are not the most reliable payers. Especially now that large amounts are involved, there is considerable risk for the exporter.

De DCA listing bale price onions is now having great difficulty keeping up with rising grower prices. Exporters actually need a higher price but are still cautious about raising prices to retain customers. This still works now because they often run on onions that were purchased a few weeks ago. If the switch is made completely to sowing onions, something will need to be added. The large sorting capacity is now working to a disadvantage. Companies are very competitive with the price to attract work. Shutting down the business and saying no to the customer does not happen quickly, but that is actually what is necessary according to some insiders.