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Analysis Onions

Good question cheers up onion sector

25 October 2024 - Jurphaas Lugtenburg

The demand for onions was downright good this week. Then you notice that a few boats for Africa do the mood good. With a healthy demand for onions you would expect the market to respond to that. That happens, but only half, you could say.

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Busy all around in the onion world. Several sorters have worked long days to complete all orders this week. It is always difficult to estimate how much has been exported this week, partly because some phytos may have been made a week earlier, but several insiders would not be surprised if week 43 becomes the first '40.000 tons plus' week of this season.

The busyness at the packers is also somewhat noticeable at the grower. The supply of onions that have to go because, for example, potatoes have to go in the shed, has dried up a lot. We are somewhat in a transitional phase. A grower who has had a bid of, for example, €10 ex land is not enthusiastic about €12 from the shed. You have to do your best to get your hands on onions, say various sorters.

Price issue
Buying more expensive onions is no problem for a sorter if you can pass on that higher price to your customers. That's where it gets a bit stagnant. A half or a whole cent is still possible with a bit of pain and effort. Gradually taking steps to a level of, for example, an average of a quarter in the bale is not going to work. And that while that should be possible according to some insiders, given the demand.

Relatively large volumes at sharp prices are not going so well for the grower this season. As a result, working stocks are and remain on the small side, which means that if a buying round is done due to good demand, growers immediately get a firmer footing. If it is a bit quieter a week later, the grower price does not or hardly reacts to that. On the other hand, growers also have the feeling that the trees are not reaching for the sky this season. If a grower with an Africa batch gets a realistic offer, luck is also given quite easily.

De DCA quotation Bale price of Onions takes a small step up this week. Especially because sorters were well into work this week, a bit more was asked. Missing an order now was no problem. Whether that idea holds up next week when there are no boats, we have yet to see.

Read here is the explanation from DCA Market Intelligence on the new quotations.

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