For most arable farmers, the onion market is the most volatile they have to deal with. This was confirmed again this week with a significant price jump on the stock exchange in Emmeloord. In itself, the top of the listing is not that crazy, only that €30 we were used to for delivery in May. By bringing that forward, the tension in the market is further built up. The DCA bale price is meanwhile pulling its leg up, but such steps as in the grower prices are difficult to keep up with.
Don't ask how it's possible, but take advantage of it, that's more or less the adage that both growers and sorters adhere to. As long as the market is going up, there's nothing wrong. This can be seen, among other things, in the fact that onions that don't actually meet the quality standards but that can be made into something are simply picked up and sorted without much grumbling. Finding something else in the current market at a price that a processor can do something with is not easy.
The coming weeks it does not look like the mood will change in the onion trade. We have little to fear from competition from abroad and since many larger and smaller Dutch sorters are also participating or have done something at let's say €30 to €35 for delivery May/June, there is also not much interest in talking the price down.
Shopping rounds
A relatively high price is one thing, but as a grower getting a buyer is another. This week there was a buying round going on, but as time goes by the number of rounds we still have to go through naturally decreases. And as the new harvest approaches, the number of interested parties for the old harvest usually decreases. Taking a gamble (both as a buyer and as a seller) is fine, but build in some certainty that you will not lose the profit of the season, say some insiders.
In the midst of all the violence with the growers' prices, the DCA Bale price also takes a big step up. In practice, the spread in prices is even wider than last week. If we ignore the biggest extremes, the bale price ranges from €19 at the bottom for the triplets to €38 at the top of the supers. Sorters with top quality generally dare to ask top money for it now.
Read here is the explanation from DCA Market Intelligence on the new quotations.