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Analysis Onions

There is no level to draw on the onion market

23 September 2022 - Jurphaas Lugtenburg

The mood on the onion market remains largely positive. Yet it is difficult to interpret the market. Everything runs together. Onions, onions that are temporarily in potato storage and the first onions from normal storage. One thing is clear: the grower likes it.

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It is not really busy at most sorting companies, but it does run smoothly. Whether or not a ship has docked for Africa is noticeable in the mood among traders and sorters. There are no parties hanging over the market and that makes the market feel healthy. In some seasons, sorters sometimes want to push to get the onions away, but that is absolutely not the case this season. This is done firstly because of the money involved and secondly to keep the market healthy.

Grower decisive so far 
Until now, growers have been decisive in setting the price for the onions and the bale price followed. In the current market it is difficult to get a realistic picture of the grower price compared to the bale price. Sorters take an average of older and more recent purchases and can then work with the current bale price. Now that the switch is gradually being made to onions from storage, that ratio is becoming out of balance. Growers who have declined €28 from the field will also not accept €30 or slightly more from the shed. And if you have to pay €35 to the grower and get €35 in the bale, it is not suitable for the sorter. The bale price will therefore have to increase if the growers hold their ground.

Earlier this season, several exporters were concerned that the bale price would follow the grower's price. That was successful and the hope is that this trick can be repeated again. Whether that will work remains to be seen. Intuitively, a small drop in the bale price towards the end of the ex-field period is closer than a step up.

De DCA listing bale price onions remains largely unchanged this week. On average, the bale price is approximately €35 to €36 per 100 kilos, depending on the lot. The market for triplets is the weakest point. According to traders, you have to sell them with it. 

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