The onion market is still crystallizing, but the contours are clear. Trade is limited, but tension in the market is increasing. If there's one thing that stands out so far in this onion season, it might be the role of the speculator. Or rather, the lack thereof.
If there's one thing that stands out so far in this onion season, it might be the role of the speculator. Or rather, the lack thereof. A dangerous statement, because you never know exactly who has how many onions in position. But if you listen carefully and hear and see what is happening in the market, there are not many indications that point to major activity by speculators. Perhaps the relatively high prices with which we started the season also had something to do with this.
Speculation may have a slightly negative connotation for some. That is not correct. In fact, the lack of speculators or traders taking positions may be making the market more volatile. For the beauty you actually need a group that cycles between the growers (who are firmly in the saddle) and sorters (who lean back a bit). If one person doesn't want to do it, the other can pick something loose and vice versa. Then you keep the momentum going, although that can of course also turn out wrong if speculators become too overconfident. If both buyers and sellers are stiff and there are no grifters among them, price movements can be more choppy. When things aren't going well, everyone stares at each other and no one dares to stick their neck out to capture something. And vice versa, if there is demand, prices can also take another step.
Printed
The mood among sorters is somewhat depressed this week. Exports may be faster and in general there is not much to do. Some sorters pick up a lesser batch and take their time to make something of it, while others choose to work fewer hours. Outside Africa, demand is on the weak side. Last week there was some demand in Asia, but if everyone turns up, things will soon calm down. Growers don't care about that. With the exception of some land supply and from emergency storage, the barn doors of real onion storage are still kept closed. It may well be that - just like last season - the growers keep the market going. Although Dutch onions must of course remain sufficiently competitive on the world market.
De DCA quotation Bale price of Onions takes another step back this week. Triplets are now offered for less than €40 by various sorters. On average across all sizes, the DCA Quote has fallen by €1 compared to last week.