The mood on the onion market became somewhat more positive last week and that is continuing this week. The plant onions that were still there can largely be taken on a boat to Africa. Due to the rain of the last few days, it is also quiet with the onions from the land. Nevertheless, warning words are being heard from various sides.
Many destinations are interested in Dutch onions. In terms of price, according to exporters, we can go practically anywhere at this level. The large variety of buyers brings with it a special dynamic. West Africa is usually dominant in this period and it is mainly bulk work. If there is a customer with specific wishes, then something is kept aside for that.
Now it almost seems as if the more special work has the upper hand and the bulk is more of a side issue. To name a few examples: Malaysia where you have to be sure that the onions will stay good if they are on the road for a long time, Italian buyers who want large white onions or Israel, where you can go with the larger sizes of red. There are enough onions in themselves, but finding a batch that suits the customer who reports is still quite an art.
Fit and measure
The weather is not cooperating this week either. Where loading was pencilled in, it could be erased by the rain. Some still had to receive planting onions this week, but could not get there because of the rain or could not replenish the work stock as planned. There is certainly no shortage of onions, but some sorters have to push quite a bit to get the desired sizes and qualities of onions to the customers.
Growers with onions in temporary storage have been able to profit from this to a certain extent. If the onions have been inside for a while and are well dried, sorters are prepared to pay a nice extra. It is not about world prices, but there is a gap between €8 ex land and €12 dry from (temporary) storage. In any case, storage and removal is paid for.
The big wave is yet to come
Due to the expansion of the onion area this season, there is no real hosanna atmosphere. In certain regions, a large part of the onions is already safely inside. In other areas, much still needs to be done. The large bulk of onions from the land has yet to arrive. If the weather forecast is correct, it could well be excellent weather for that next week. Sunny, not too warm and a moderate wind from the east, you could hardly wish for better onion weather. For the price from the land, such a wave of onions is usually less favourable.
De DCA quotation onion bale price takes a cautious step up this week. Triplets are still on average under €20, but the other sizes are now at or above that. The last onions are tougher business. On average across all sizes, they come to €15 to €16.
Read here is the explanation from DCA Market Intelligence on the new quotations.