The boundaries in the onion market are not really being pushed yet, but growers are stuck and the competition. Partly due to the good export weeks, that mood does not change. Buying cheaper from the farmer is not possible, so something has to shift somewhere else. Do we see that reflected in the DCA bale price this week?
€20 is, just like last week, the upper limit for good coarse onions for direct delivery. Incidentally, buyers are not queuing for such money. In the term for delivery in May, €25 is included, but both growers and sorters are a bit cautious with that. Some growers doubt whether the onions will keep for six weeks. Other farmers have the idea that there is more in the barrel later in the season. With the good demand from Europe and the good export figures, there is certainly something to be said for that reasoning. It would be good if long storage is rewarded according to some sorters. "Then we might get rid of the panic among some growers to pick everything up before Christmas", according to a sorter.
Processors are more cautious
There is some uncertainty among sorters as to whether the bale price can still make the steps in the coming weeks to justify a grower's price of €25. There is not much competition from other onion suppliers within Europe. Dutch onions are finding their way well in both Southern and Eastern Europe. For the coarser onions, very decent prices are also paid in the bale, but no matter how you look at it, a considerable part always comes in triplets from a batch and sales of these are more difficult. Partly because of this, it is only possible to increase the average bale price to a limited extent.
Another reason why exporters may be a bit cautious is that they do not want to help new harvests from, for example, New Zealand and Egypt. The first new onions are often slaughtered (you better not have them) and are often quite expensive. But when the harvest gets going, the prices for the new harvest from the south can also drop very quickly. Certainly for countries such as Romania and Bulgaria, Egypt is not far away. With good Dutch onions you can compete, but you do not have the exclusive rights, warn some insiders.
The DCA Baalprijs Onions is taking a step up this week. Triplets remains a difficult trade, but for supermarkets €30 is possible. You have to dare to ask and not be too afraid that customers will drop out, say insiders.
Read here is the explanation from DCA Market Intelligence on the new quotations.