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Analysis Onions

Expensive onions make exporters hesitant

30 September 2022 - Jurphaas Lugtenburg

Growers remain predominantly positive in the onion market. Traders and sorters are showing a little less confidence this week. The Netherlands has a large processing capacity, as it turned out last season, and it is now far from being fully utilized. If there is a week like now with less demand, it quickly feels calm. That just doesn't do justice to how we are doing on the Dutch onion market.

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The onion market is currently a demand market. The working stocks at various sorters are not excessively large and, especially with the current onion prices, onions are not simply pumped into the market. Some exporters are even putting on the brakes a bit. There is a lot of money on the way and some exporters have had enough for the time being. They first want money in the bank before onions are loaded again for the (African) customer in question.

Poland is also still a good market for Dutch onions. That is certainly an interesting market for growers. The price may be slightly lower than the quotations on the regional exchanges, but because it is done via 'gross is net' it does not work out badly for the grower on balance. Poland can be an interesting destination, especially for onions that are still stuck or have been in the swath for a very long time.

Tough transition
The transition to onions from the shed is not yet going very smoothly. Growers see their feeling of a demanding and healthy onion market confirmed by good export figures and relatively high prices at the regional fairs. Sorters are more moderate in their mood. Quite a few onions are being sold, but it is not busy, sometimes even quiet at some companies. The bale price should actually increase, but that is not yet possible. On the contrary, the bale price is more likely to come under pressure due to mutual competition. "If the bale price rises, growers immediately ask for a penny more and now that the bale price is not going well, growers do not want to drop," say several traders. In the DCA listing bale price onions It is the prices of triplets and mediums that are under some pressure. The coarse and supers remain unchanged from last week.

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