In the onion trade, growers and sorters are used to strange, unexpected events. A month ago, part of the sector was still convinced that things would not go well in the remainder of the season. That mood has now turned 180 degrees. Now things may be going a bit too crazy in the other direction.
It is not yet the case that the 2023/24 onion season will fizzle out. Admittedly, we are in one of the last purchasing rounds of this season, perhaps even the last. The fact that (good) onions are being traded again was reflected in the prices at the regional fairs. Growers are more interested in it and ask €20 for immediate delivery and for later in the month the penny also swings around.
It does not really come as a surprise that the grower's price would increase slightly towards the end of the season. It just happens faster and with larger steps than expected. "Last week you could buy good onions for this season for €15 and an excellent box for €17, maybe €18. Now growers are asking €20 for everything in the better segment," said a sorter. Packers still go along with what growers ask. With all the days that fall apart these weeks (Ascension Day, the following Friday and Pentecost next Monday), it feels quite busy. It seems that it would be better to participate in another round now than to miss out on the opportunity next week.
Tension field
As a grower, this is something to keep a close eye on. Imported onions are increasingly coming onto the market. The beginning of June is the time for maintenance for many sorters and they are not running by default. Everything is possible, but the time window to sell the onions from the 2023 harvest is becoming narrower and narrower.
With higher purchasing prices, the bale price should also follow suit. That's not going to work very well. Demand seemed to become more robust, but if you ask for more, buyers will soon drop out. In order to calculate the balance, some sorters therefore opt for the cheaper onions that are still available from the grower. Turning that into a top end product is not possible. With the right customers in the file and an appropriate price, it works, but that is not for every sorter.
De DCA quotation Bale price of Onions tries to take a careful step up. The triplets and middles show a small increase. The coarse and super remain stable.
Read here is the explanation from DCA Market Intelligence on the new quotations.