Records are not broken, but the onion market continues to run smoothly. Growers and processors are just not entirely on the same page in how they experience the onion market. Farmers are slowly gaining more confidence, while the mood among packers and traders is somewhat more moderate.
A large bulk of onions from the field suddenly hitting the market has not happened so far. According to various insiders, a relatively large number of onions have been driven into temporary storage. Whether this is due to a shortage of trucks or because growers expect more in the barrel, is difficult to say. The question that is now hanging over the market for the short term is: when do those onions have to go?
Normally, mid-October is used, when potatoes have to go into the shed where the onions are now. For onions that already have a new owner, growers will stick to that. After a late planting date, the potato harvest will not be early. The fact that potatoes have not yet been harvested could make it tempting to store the onions - of course for a storage fee - for a few weeks longer. For the onions that have not yet been sold, growers also seem to be in a bit less of a hurry to find a buyer. Not that grower prices are suddenly jumping, but you do notice that farmers are a bit more firmly in the saddle compared to a month ago.
Get to work
In export, the first 30.000 tons have been made week. Exporters and sorters are not overflowing with enthusiasm. Everyone does a good job, but pulling out all the stops and, for example, working with two shifts to get all orders placed, is not an option. Given the area expansion, a large amount of onions still has to be removed even with an average yield. A few weeks of 35.000 or 40.000 tons would be welcome in that respect.
Whether a processing capacity of 40.000 is still feasible is doubted by some. A fairly large player that normally does quite a lot at the beginning of the season is at a standstill. It may be even more difficult to get it done with personnel. Many sorters have invested in optical sorters, but manual reading remains necessary. People are also needed for the supply and removal. Whether it is someone at the front of the conveyor belt or a forklift driver, it is difficult to find someone, as various sorters complain.
De DCA quotation onion bale price remains fairly stable. Instead of an increase that was still somewhat expected last week, the bale price remains largely the same. Large sizes remain scarce and well priced. The finer ones, and especially the triplets, are under some pressure.
Read here is the explanation from DCA Market Intelligence on the new quotations.