The difference between how growers see the market and what sorters have to say about it is great. It is therefore not surprising that both have difficulty finding each other in the trade. What makes the matter even more complicated are the interests and interests of various players on the market who, when given the chance, like to bring their own vision to the fore and thus try to steer the market in the direction that suits them.
The Emmeloord listing committee is more or less the favourite topic of conversation in the onion sector. One person is outraged that Emmeloord is roughly setting the top 60% at €23 ('they are giving speculators free rein') while the next expects that it will take another week, maybe two or three, before €25 is on the board, because 'for less than €20 you can hardly buy anything good anymore'. What everyone does agree on is that growers are firmly in the game. Since October, farmers have had a firm grip on the onion market and they have no intention of letting go.
Speculation
With the most recent upturn in the onion market, it is wise to consider the speculative nature of the market. Some sorters have a lot of onions in relation to the demand for sorted product and do not mind a slightly higher grower's price. This is even more the case with speculators who have not been able to gain much honor on the onion market so far. Buying a cell too expensive now (and making sure everyone knows it) and shouting about good onions that are almost gone makes everything that is already in the books also worth a lot more.
For the grower, it doesn't have to be a bad thing that there is some life on the onion market. If speculators like scumbags get things going, the market will sometimes pick up that momentum. The only risk is that they overplay their hand and pump too much air into the market, causing the bubble to burst. How the market will develop further is of course difficult to predict, but the fact that sorters have done quite a bit of business on €25 for delivery in May is a sign of confidence.
Perspective
There are big differences between sorters and exporters in the sales of sorted products. If you speak to a sorter who has beautiful white and especially coarse onions at his disposal that were bought a while ago, you hear few complaints. Others who have run out of stock and now have to go to the farmer, are less happy.
The spread in the bale price was already large and will become even larger this week. There are not many coarse onions this season and that is precisely what is in demand. The lower end of the DCA Bale Price Onions this week is €15 for the triplets and that goes up to €31 at the upper end for the supers. Because there are such large price differences, it is very tempting for some sorters to adjust the sieves accordingly. Just pushing the limit (or going slightly over it) makes a considerable difference in the financial return in a batch at the bottom line.
Read here is the explanation from DCA Market Intelligence on the new quotations.