The revival in the onion market does not seem likely to last long. A few weeks ago there was still plenty of speculation about whether we would have enough good onions until the new season. Now the question is being asked again how much we will have left.
Things can get crazy with onions. In mid-April, sorters were, so to speak, fighting over the last good cells of onions because they were hardly offered. We are now almost in June and you are hearing from various sources that the number of good onions from the 2023 harvest in the sheds is still not too bad. "A week or two ago it would have suited me to buy some more, but we couldn't get them then. Now we are slowly bringing the season to an end and we have planned it in such a way that we can continue with the stock towards the new harvest and you are still offered onions that you thought were almost gone."
What ultimately remains of onions this season is causing lively discussions. Compared to last season, we are still catching up somewhat. However, the gap is significant and it does not seem realistic that we will eliminate the entire backlog. For the good part, we should actually have had an extra month to get rid of the last, say, 70.000 tons.
Resigned mood
Sorters are now becoming more critical of what they buy. Until a few weeks ago, there were still packers who charged the cheaper lots to the growers and thought they could make a higher margin despite the extra work. That group has now given up. I would rather have a better and more expensive box of onions that you can deliver to regular customers without fear or trembling, than do half-assing between the discounters and hoping that no claim will follow up. What also plays a role, of course, is that you don't want to be left with onions that you can no longer use at the very end.
De DCA quotation Bale price of Onions has remained virtually unchanged compared to last week. Lowering the price does not result in any extra work. In fact, according to some exporters, that would be counterproductive, because you would then send the signal that they would be cheaper next week. The question remains whether the packers will succeed in remaining so united. It is still tempting to steal some work from your competitors when things are quiet.
Read here is the explanation from DCA Market Intelligence on the new quotations.