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Analysis Onions

Last onion stretches weigh the heaviest

28 April 2023 - Jurphaas Lugtenburg

Confidence in a good outcome is not getting any better in the onion market. Prices are decreasing rather than stabilizing on both the farmer and in the bale. The earlier successes this season have been somewhat forgotten, while the high prices of two months ago are still very fresh in the memory.

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Sorters are generally very careful when capturing onions. The expensive inventory of work still hangs like a millstone around the necks of several players. Now all the antics of shuffling stocks and grabbing a cheaper batch in order to bring down the average purchasing price is not something that all sorters are willing to do. It is better to take a loss now and perhaps earn something later than to earn nothing now and if things go wrong, allow losses to increase further, say some sorters. Spreading out the stock is more the motto in that respect. "And if the need arises, we will find onions somewhere," said a sorter.

No sole ruler
Supply from outside Europe is also increasingly finding its way to our continent. The quality of the early Egyptian onions was not that good, but now the growers are starting the main harvest. And those onions are simply of good quality and often better than what is currently coming out of the shed in the Netherlands. In terms of price and delivery conditions, the Egyptians have also made quite a few concessions compared to a month ago, according to some insiders, and are now back to 'normal', although prices of course remain at a relatively high level.

There is a lot of searching in the bale price this week. Some sorters are afraid of missing orders and are still slumping somewhat. Others have more confidence in the market and have to do something to keep customers satisfied and on board, but try to keep the price down as best as possible. The DCA quotation Bale price of Onions takes a step back this week. The price range remains very wide, but on average the bale price is taking a step back. Depending on quality and size, the average is somewhere around €80 per 100 kilos, all sizes taken together.

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