It could be a bit earlier, it could be a bit later, but we know that demand from Africa will drop during the onion season. The fact that less Dutch onions are being pulled was clearly noticeable this week among sorters and exporters.
The hope was that Africa would perhaps remain on the market for Dutch onions until the end of January this season. Next week, it now appears, the final decisions will be made about whether Senegal will close its border to foreign onions. This measure will protect its own cultivation. According to insiders, there is a good chance that Senegal will close down. If a boat could still go that way, that would be a bonus, but that will not turn the Dutch onion market upside down either.
Commotion in red
As tame as it is becoming in the yellow onions, there is just as much commotion in the red onions. Both Goes and Emmeloord are putting €40 at the top on the board for the coarse red onions. We have probably had the biggest steps in the price for now and it is only the very nice coarse lots that buyers are willing to open their wallets for. What is happening now in the red onions is normally expected in March. Incidentally, it is not easy to keep up with the grower's price in the bale. Triplets are a bit behind in the €30 and the supermarkets are struggling to get over €50, so to speak. Some are asking €55, but there is little demand for that money.
Where red onions explore the upper end of the bale price, yellow ones take a step back. Less is going to Africa and sorters are therefore less busy. Buyers see that and wait with ordering in the hope that the price will drop a bit, and if that does happen, you end up in a negative price spiral. Across the board, there is about 1,5 cents off this week.
Read here is the explanation from DCA Market Intelligence on the new quotations.