The first half of the 2022/23 onion season is almost over. Growers, traders and sorters generally look back positively on a hectic season. Peace has returned to the onion market a bit this week. But the big question hanging over the market is: what can we expect in the second half of the season?
A combination of confidence among growers, speculators who went along with this and a healthy demand for onions from Africa gave the onion market wings in the first half of the season. There appears to be a good demand for onions from African countries until the first half of January. This means that many onions are off the market. A critical comment that some insiders do make is that this also includes imports from Germany and Belgium. Most traders and sorters agree that exports will take a significant step back.
Buyers from Eastern Europe have so far kept quiet. They think Dutch onions are too expensive. Bad onions do find their way to Poland. Prices are at a relatively high level, but well below stock exchange prices. Several sorters are on the cautious side when taking positions. "We are working through the stock and will see what will happen later in the season," say some sorters.
speculators
The big uncertain factor on the market could well be the speculators. Opinions differ about how many onions are still in the hands of growers. But perhaps even more important is the question of how much there is in speculators, according to some insiders. "Farmers can of course make strange leaps, but the group that said no to €30, €40 or €50 will not be very large. And even if the price were to drop a bit, the grower who held the onions will have left money behind. are lying around, but if all goes well there will still be some left over. For speculators or sorters who have bought for €50, the cards are shuffled differently. They feel every decline immediately in their wallets and how firmly that group remains in the saddle when the price would take a step back," wonders a trader.
The DCA quotation Bale price of Onions remains virtually the same as last week. The average bale price is around €50 to €51 per 100 kilos. Sorters and buyers keep each other in good balance. Sellers would like something extra, but don't really dare to ask at the moment. Buyers grumble that it is expensive, but they continue to buy onions.