The onion market is in a state of flux again. According to some insiders, grower prices are way ahead of the music and the bale price is having difficulty keeping up. This does not affect the mood among the growers, but various sorters and commissioners are scratching their heads.
Many growers are fed up with the onions. "There are plenty of years when you hardly see anyone buying onions in December and now potential buyers are almost turning away," said an insider. The farmer therefore feels strengthened in his negotiating position. Growers dare to ask for money and if the buyer does not accept, they quietly keep the door closed. It is important not to literally keep the door closed and to check the cell regularly. According to traders, batches regularly appear that have deteriorated faster than the farmer assumed. Those mediocre or bad onions are also fairly easy to get rid of in the current market, but often at very different prices than what the grower expected.
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For good onions delivered in December, €40 per 100 kilos at the farmer is the rule rather than the exception. For delivery in March, business is done at €50. Some sorters are concerned about the role of speculators in the current onion market. According to some, the grower price is very inflated. As long as the market continues to rise, things will go well, but when the bell rings, Leiden will be the burden for those who have onions in position. According to insiders, there are good opportunities for good onions in the second half of the season. Many onions have already left, so there does not seem to be an oversupply anytime soon. For exports to Africa, you can get away with more than if the onions stay in Europe, although several exporters indicate that Africa is currently also keen on quality due to the high prices.
The DCA quotation Bale price of Onions takes a step up this week, but the spread is wide. First of all, there are considerable differences between transactions made at the beginning of the week or at the end. There are also relatively large differences between sorters. For a nice coarse batch, an average bale price of just over €40 can be achieved. Some sorters are asking for €45 for next week, but customers are not immediately saying yes.