It is only May, but still a relatively large number of sorters think it is enough for the season. Those who do continue are careful with their stock. That clearly has an effect on the DCA Bale price this week, with quotations at the highest point of the season.
It has been busier in the onion trade at this stage of the season. This is partly because relatively many processors have stopped. By and large, there are a few big boys left. They have already largely covered their fixed obligations. If they want to buy some more, it has to fit in terms of price.
There are not many old harvest onions left. Most things have been done at the grower's and if there is anything to be had, it is usually a few cars that are left over. A cell of say 500 tons of free onions is according to sorters actually no longer to be found.
Because it is difficult to buy onions, sorters who continue to operate are careful with their stock. They prefer to operate kilo bags, whether or not in crates for a fresh produce or supermarket, with a nice margin than tons in bulk. Certainly for the processors with nice onions in their books, that is a logical choice. However, not everyone is in that position. Some have slightly lesser onions and they try to say goodbye quickly before the summer break. That group is making a sharp turn.
The range in the DCA Bale Price onions is wide this week. The bottom of the market is around €40 for the triplets that sellers are happy to part with. Medium, coarse and super are pulling a bit more evenly and the top end is at €60 or just over that. With that, the coarser sizes have taken a clear step up compared to last week.
Read here is the explanation from DCA Market Intelligence on the new quotations.