These are exciting times on the onion market, but not in the way growers, traders and sorters would have liked. Overall, it remains stiff. There has to be a tipping point somewhere. Only when is that?
There is certainly not a light-hearted, cheerful mood among players in the onion market. Some see the onion market as a large obstacle course in which the trick is to reach the finish line without too many scratches. That is also understandable. In March, a lot of onions were collected by sorters that later turned out to be far too expensive. Fewer onions appear to be in the books for April and that may provide extra room for maneuver.
It is not that there is no hope at all for the rest of the season. In terms of price, Dutch exporters have found connections with other suppliers in Europe. Reports are coming from Germany that, as in the Netherlands, there may be more onions than was expected a few weeks ago. Prices quoted for German onions are €40 plus. The Landwirtschaftskammer Österreich will note €40 to €45 in sorted cash in the box this week. Significantly less is paid for small batches or onions with a quality problem, the Austrians write in the explanation. That is the sore point in the onion market.
Quality makes the difference
Sorters and exporters can make good to good use of good, coarser onions. Triplets and nice means are just hard to get rid of. This also applies to onions that contain germs or that wear out quickly. There is little left for this other than the industry, but that is only in the market for real bottom prices.
Prices at the grower show a considerable bandwidth in the quotations on the regional stock exchanges. This is greatly increased in the bale price. To provide a realistic representation of the market in the DCA quotation Bale price of Onions is quite a challenge. The difference in quality and therefore also price is miles apart. This is especially the case in the middle. There can be €45 or more between a lot of 65-50 that has been waiting too long for a buyer or beautiful 70-5.
Read here is the explanation from DCA Market Intelligence on the new quotations.