Moderate export figures and quite a few onions still in the sheds. That dampens the mood on the onion market. There seems to be some forcing going on now. Under pressure everything becomes fluid and little by little there is some trade, both for the grower and for export.
Almost everyone has to get used to it; we have now gone from a pure demand market to a real supply market. That doesn't have to be a bad thing in the long term, but right now it's all about persevering. Both for growers who have to sell onions that do not have a shelf life for months, and for sorters who are collecting last winter's expensive stocks. It remains striking how many growers, traders and sorters can perfectly predict such a change in the market afterwards.
Of course, there were signs that the market cannot go up on its own. Expansion of acreage, both in the Netherlands and Europe, higher yields in Europe and other parts of the world that also want to benefit from the relatively high onion prices (for example North Africa and China). Due to tenacity, first and foremost on the part of the growers, but also on the part of the sorters and problems with storage life and quality in general, the onion price has remained stable for a long time. If we look at the average onion price this week, there is still no shortage. As a grower you naturally hope for more, especially with last season in mind.
From an almost manically positive attitude, some players in the onion market are now going to the other extreme. The fact that prices have taken a few steps back does not necessarily mean that we will drop to zero. The European onion market is not of such a nature that we have very large surpluses. For example, the first regions in Germany are already loose when it comes to storage onions, some sources report. To be clear: that does not mean that there are no more onions in Germany.
Competitive level
The Netherlands has now taken such steps that we have fallen below German and Austrian prices. If you want to know, Dutch exporters can regain market share in Europe. It is risky to make a prediction, but a scenario in which grower prices stabilize around €25 with an associated bale price does not seem inconceivable. Exports will not skyrocket, but if we approach 20.000 tons for a few weeks and serious volume still goes to industry, the onion market could look a lot friendlier at the end of April or beginning of May.
De DCA quotation Bale price of Onions takes a big step back this week. There is little demand for triplets and infants who traditionally go overseas. Packers are therefore pushing hard to keep stocks from increasing. Coarse and supers are also under some pressure. That shouldn't be necessary, according to several insiders. Offer is limited, but for one reason or another several providers are cutting corners very sharply.
Read here is the explanation from DCA Market Intelligence on the new quotations.