Busy all around at the onion sorters. In the onion sector, a lot of work is more or less synonymous with a good mood. Not entirely without reason. There is no need to look for customers. What does that mean for the bale price?
Senegal and Ivory Coast are pulling hard on Dutch onions. However, the demand is broader, various exporters indicate. Exporters supply onions from Asia to Central America. That is a sign of a healthy market according to various traders. A few weeks ago, some buyers were still afraid that higher prices were mainly dictated by growers. In the meantime, we can cautiously conclude that demand also plays an important role.
Trade at the grower is going more smoothly than we have been used to in the last two years. Last season around this time there was, so to speak, €5 or €10 between bidding and asking. Now buyers and sellers are much closer together. Grower prices are maintaining the upward trend but without any crazy jumps. A quietly rising market is usually easy to do business with.
A little less exciting
The fact that prices are a bit lower than last season across the board also helps. 'Last year we were playing banker', say several traders. The fact that the amount in a container is now about half or a third lower than last year makes it a bit less exciting. 'You always have to wait and see if and when you get your money from exotic places', says one exporter.
Although the mood is predominantly positive, some sorters still have a critical word to say about the margins. There have been hardly any opportunities to buy really cheaply in relation to the bale price. According to insiders, it is an old-fashioned cost-plus year for both growers and sorters, with a very decent plus if you pay close attention.
De DCA quotation Bale price of Onions does not give much reason to complain especially when it considers that most sorters are doing serious volumes. Especially the middle ones are making a step this week.
Read here is the explanation from DCA Market Intelligence on the new quotations.