The onion market is starting to move again. Growers were already stuck in the saddle and that doesn't seem to be getting any less. Farmers with good onions can easily keep the shed closed. To get their hands on onions, the sorters have to go the extra mile.
The onion market currently seems to be following the same pattern as earlier in this season. Growers set the price and the trade reluctantly complies. For good large onion delivery in December, €35 is the minimum, it seems. That is quite a difference with the average of the regional fairs, which stands at €29,50 this week. This effectively amounts to a custody fee of more than €1. You can jokingly say that storage is expensive with high energy costs, but not that expensive. According to various insiders, the difference is caused by differences in quality. Parties that have to leave quickly often have a story. However, that is currently the lion's share of the trade. The really good onions are passed on as much as possible and that gives a slightly distorted picture of the market.
Price ceiling
No records are being broken in terms of exports, but with weeks of almost 30.000 tons you can't say that things are going badly. There was a hitch in the export to Senegal. The country this week imposed a price ceiling on onions. Converted, foreign onions may not cost more than approximately €0,75 per kilo on the local market. There would also be some logistical problems in Senegal. According to some insiders, these developments could have a negative impact on the Dutch onion market. Others are not impressed and mainly call it stories to dampen the mood among growers in the Netherlands.
The DCA quotation for the bale price of onions takes a small step up this week. On average, the price for a good batch is €35 to €36 per 100 kilos. The demand for triplets is lagging somewhat behind most processors compared to the larger sizes.