The dark clouds are not yet clearing on the onion market. Bale prices remain under pressure and are taking another step back this week. Exports are starting to take shape and exporters and sorters are showing a lot of interest. They want to quickly switch from the onion onions to the sowing onions.
The onion onion harvest is progressing and the supply is not decreasing. In addition, the seed onion harvest has started. Sorters and exporters want to switch to seed onions as quickly as possible because of the better quality. This means that business can also be done for further destinations. On the other hand, the time for onion sets is far from over, which means that the markets are getting at each other's feet.
Onion onion market continues to decline
There are still a lot of onion sets floating around in the market, both parties that have an owner and still have to find a buyer. The latter is not always easy. Especially the parties that have to travel a longer distance to the sorter or only have an average to finer sorting. The stock exchange in Goes quoted €10 to €12 per 100 kilos for onion onions from the field on Tuesday, but the reality today is that these amounts are no longer being earned. A large, good batch of onion sets for immediate loading can be charged around €10, but prices of €6 and €8 are more realistic according to various growers and traders. The onion onion market is therefore declining further.
It remains a matter of supply and demand and that relationship is quite out of balance in the yellow onion market. Sales are not that bad at the moment and sorters and exporters, for example, have already been running at a good pace this week. Especially if you take into account that Senegal has only shown limited interest to date. It is expected that the Senegalese borders will open to Dutch onions in the second week of September. Orders for next week are also increasing according to sorters, but the supply of onion sets is simply too large. In addition, the sowing onions are available.
Bale price step back again
Bale prices have taken another significant step back this week, as shown by the DCA bale price quotation. This does not happen all at once, but gradually as the week progresses. At the beginning of this week, bale prices were slightly higher than they are now. On average, the medium and coarse size grading amounts to between €18 and €20 per 100 kilos. The triplets go into the bag for a little less and the supers, which are relatively limited in availability at the moment, go for €20 or more. However, the range remains large and it just depends on the destination. Seed onions are only turned and packaged to a limited extent and the bale prices are a few euros higher.
Exporters and sorters are enjoying quite a bit of interest from different parts of the world. With the current bale price, we can compete well and we participate in almost all places in the world. We just have to wait a while for sowing onions that are of better quality and suitable for all destinations. In addition, stability is being sought in the Dutch onion market. When the onion market is stable, this also gives buyers peace of mind and they take a less wait-and-see attitude.
Bottom price
According to sorters and exporters, the bottom in the market has not yet been reached in bale prices, despite increasing orders and interest. The bale price is expected to take another step back next week, although the moderate mood seems to be improving somewhat among sorters and exporters due to the great interest and increasing orders. However, supply remains in control for the time being.
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