With the onion onion harvest in full swing, the supply has not decreased among packers and sorters. They prefer to switch to sowing onions as quickly as possible. Sales aren't all that bad for this time of year, but the supply is simply too great. The DCA Baal Prize is also under pressure this week.
Sorters and exporters started the new export season quite positively. The start of the season was good with bale prices of €40 per 100 kilos, but there is now very little left of that. This week too, bale prices are several euros lower than a week ago and, according to several insiders, the bottom has not yet been reached. When this will be achieved remains uncertain. It is a fact that demand is increasing these weeks.
Not bad sales
The onion export figures are always three weeks behind the current week, but according to various sorters and exporters, sales on average were not disappointing last week. "We do have work and are selling quite a bit of volume, but the supply is simply too great for the demand," says an exporter. Some are a lot busier than others. By the way, it was export volume above average in week 30. In terms of sales, West African countries are increasingly entering the market and other continents such as Asia are also making inquiries. They seem to be mainly waiting for the seed onions, given the better quality they have compared to the onion onions. And this also applies to several African destinations further inland. The regular export engine Senegal is limited to the market this week. That is expected to happen again in September, once the borders are opened.
Supply is in control
With the onion onion harvest in full swing, there is quite a lot of supply on the market. Although a fair amount has already been removed and sold, there are still quite a few onion sets on the land without an owner. Sorters and packers are mainly busy disposing of the product that has already been recorded. In addition, they are reluctant because it is uncertain at what price they can purchase with the still declining bale prices. Moreover, it is sometimes disappointing to even find a buyer for the onion sets, given the large supply.
The stock exchange quotation in Goes this week amounted to €12,50 to €15 per 100 kilos for both fine and coarse size onion sets. But growers and commission agents indicate that nothing will be purchased at these prices this week. Prices for onion sets vary considerably, from as much as €7 to €11 for the nicer lots or direct loading. If you load later, or there are quality problems, the price will go down. It is a bit of day trading, with prices dropping slightly every day on average. Quality is sometimes an issue, especially bacteria is often mentioned. And sorters are currently strict about this.
Bale prices
It does not improve the mood among sorters and packers. Several indicate that they want to switch to seed onions as quickly as possible, because they offer more certainty in sales and the quality is simply more reliable. And with the current bale prices, exporters everywhere can participate, they indicate. Bale prices remain under pressure this week and have not yet found the bottom after several weeks of sharp declines. It depends a bit on the destination, but on average the DCA quotation Baal price for the medium and coarse size grading this week amounts to around €22 to €23 per 100 kilos. That is again several euros lower than a week ago. The triplets go for not much less and the supers have a boss for €24 to €25.
A complete overview of the DCA Baal Prize with explanation can be found here.