The mood on the onion market is shifting. Buyers cautiously go back to the farmer and that is immediately reflected in the sentiment in the market. That does not mean that the demand from abroad for Dutch onions has suddenly taken off.
In January, exports are usually quieter and onion prices usually show a dip. There has also been a price correction in grower prices in recent weeks. What makes this season special is that growers have extreme confidence in the market and did not get upset when the €50 disappeared from the plate. A lot of onions were sold in the first half of the season and 30.000 tons in the first week of this year is also a good result. The export figure will drop in the coming weeks, but that is no reason to panic. It is difficult to estimate how many onions there are now, but several insiders who venture an estimate estimate around 15.000 tons per week for the rest of the season. Some people think this is already on the high side.
It is even more difficult to estimate how many onions are completely free of this, but it is clear that it concerns a limited quantity. If there are a few traders and/or sorters at the market, you will soon have a mood. The regional stock exchanges quote large onions at high levels of €40, but some sorters indicate that there are not many nice large onions for sale below €50 for delivery in the second half of February or early March.
Demand is picking up
The demand for sorted onions has slowly picked up again. Southern Europe in particular is on the market. No huge quantities are sent, but it is enough to create a buzz on the market. Southern European buyers are critical, by the way. They are only on the market for large white onions. Buyers from Eastern Europe are still largely keeping their distance. It is also likely that various sorters want to continue riding on the train. Sorters who thought the onions were too expensive in December are now finding it difficult to intervene and those who have continued (slightly) can now still participate. Sorters who are mainly dependent on agency exporters have difficulty making sufficient margin. Especially when they have onions in position, it will be exciting to see how they proceed. If the bale price lags behind and the grower's price rises, they can simply resell the onions to another sorter.
The DCA quotation Bale price of Onions takes another step up this week. The average price is around €49 per 100 kilos. Because it is mainly large onions that are in demand, it is difficult for sorters to keep the price of medium and triplets at an adequate level. You can make sufficient margin on the coarse without too many problems according to various graders. However, a batch always contains finer onions and if you do not have their sales in order, you will also lose the margin on the coarse ones.