These are not the most exciting times on the onion market. It is normal that it becomes quieter on the onion market from the second half of January. And yet, growers and processors are surprised almost every year that we turn from the autobahn onto a polder road at the same speed.
The mood in the onion sector is not improving. For sorters, it is a matter of finding work to keep the permanent staff going all week. That is quite different from six weeks ago when the onion sorters were overwhelmed and had difficulty filling all orders. With the decrease in demand, the mood among processors may plummet even more.
Growers may not be bursting with self-confidence, but they are keeping the market reasonably on its feet. Of course, there is supply from parties that are somewhat deteriorating in quality, but for good onions direct delivery, up to around €15 is asked and paid. Growers who do not have to do so do not feel the need to sell. That is perhaps also the lesson we can learn. In this period when it is usually not busy, it is important to ensure that you do not have to go to the market. That is of course easier said than done. Being sharp on what you have in hand so that you are not faced with surprises does help.
Short-term
The short-term prospects for the onion market are not so positive. Now the stock exchange in Berlin is an excuse that things are not going well yet and soon we will have another carnival, which will bring half of Europe to a standstill. However, that does not mean that the rest of the season is lost by definition. The CBS put the final harvest estimate at almost 1,5 million tonnes. That means that a large amount of onions still have to go and an average of 20.000 tonnes per week in the European season is still quite a challenge. On the other hand, there will still be some losses due to quality.
Those mediocre onions are easily absorbed by Poland. That could be a sign that there are fewer onions there than some would have us believe. The onion trade could still go either way in the coming period and there will certainly be a purchase at some point. Admittedly, that is stating the obvious, but it does the situation the most justice.
The bale price is maintaining the trend that started at the beginning of this month. Especially with the finer sizes it is a matter of haggling to get rid of them. For pallet work nice coarse white onions suitable for Southern Europe can still be made a plus in the current market.
Read here is the explanation from DCA Market Intelligence on the new quotations.