Confidence in the onion market was high in the first half of the season. We have now reached March. Various sorters have come to the conclusion that onion prices of around €50 for February/March delivery, which were very reasonable in November and December, were, in retrospect, just a bit too crazy.
It is said that a good thing hurts a little on both sides. As the delivery term is postponed and the chance that the daily price will deviate from the agreed price, the chance increases that one of the parties will feel more pain. Growers who paid a price of €50 in December for May delivery are in good hands. "It's fun, but that's part of the job," say several packers. "Take a loss and move on."
However, the extreme growing season is still leaving its mark. It happens more than once that boxes that looked great in December now have defects. Germs in particular are a problem. That produces crooked faces on both sides. The buyer believes that the seller has not properly looked after his product, while the seller believes that the buyer has checked his product regularly enough for changes. If tare percentages become too high, the question arises: what next? Rejection if the onions do not meet the specifications of the sales contract is logical.
The grapes are sour
The grower is then left with onions that need to be removed urgently and for which there are few buyers. Industrial quality buyers have a knack for that somehow. Sorters are often not interested in rejections. These were the nice lots that were written down for such amounts and packers often already had a destination in mind for them. There is plenty of onion supply from the growers. When it comes to destinations for packers who have high demands, such as Southern Europe, finding a suitable box is not an easy task, various packers complain.
De DCA quotation Bale price of Onions is under pressure again this week. It is mainly the triplets and mediums where sales are stalling. The price range remains relatively wide. For supers that are good in the skin and have a nice color, more than €50 is paid. For triplets that have been standing in front of the drying wall for just too long, the price has already dropped well below €40.
Click here for the explanation.