Yellow onion sales are continuing at a particularly high pace, while there's little to no interest in red onions. Yields for yellow onions are generally very good, while net kilos of red onions from the sand are disappointing.
Grower prices at regional fairs are stabilizing at around €13 to €14 per 100 kilos. The only noticeable movement is a slight increase in the price of finer lots at the Emmeloord fair. This means that finer lots are no longer inferior to coarser grades.
There are no red onion prices in Emmeloord. The conclusion is that there are too few transactions. Middenmeer is trading at €12 to €19 per 100 kilos. The price at the lower end has dropped by €1 compared to last week. Goes reports unchanged prices of €15 to €18 for red onions.
A trader reports that the tare determination of red onions from the sand isn't easy. He's disappointed with the net yields. He's noticed a lot of thrips and fusarium. After deducting the tare, the yields are very disappointing, he says. There are also some issues with yellow onions here and there, but overall, the yields look good.
Large exports in a quiet week
In a week considered quiet like the third week of September, a total of 36.500 tons of onions were exported, according to preliminary figures from KCB and GroentenFruit Huis. This indicates that processors don't have to exert excessive effort these days to export such large quantities of onions.
Large quantities are certainly crossing the border. A record volume of 330.000 tons was exported in the first twelve weeks. This is 75.000 tons higher than the same period last year. This means exports are 29% ahead of the previous season.
Despite the enormous sales, sorters, packers, and exporters are failing to raise sales prices. Quite the opposite. Exporters are managing to buy sharply and thus keep pricing under pressure. This is gradually eroding the margins of sorters and packers.
Purchasing increases slightly
Purchasing is actually increasing slightly. The harvest period has concluded, with the exception of a few plots. This means that onions from temporary storage are now up for grabs. To acquire these onions, buyers will need to bid quickly at €14 per 100 kilos. While some are still being reported at €13 and €13,50, that is becoming more difficult.
The DCA bale price for medium-sized onions fluctuates between €19 and €21 per 100 kilos. This week's price therefore remains at €20 per 100 kilos. However, we are seeing the prices of the different grades converge. Consequently, the premium for larger onions has decreased slightly.
Purchase prices are expected to rise further in the coming period. Prices of €16 to €17 per 100 kilos are being reported for November and December. To pass these prices on to sales, export prices will need to increase. It is crucial, however, that the supply and demand balance remains as good as it was in the past period.
Little purchasing in the long term
For the period from January to March, prices are reported at €20 to €22 per 100 kilos. It should be noted, however, that these are sales to supermarkets. Few onions are being purchased for export to farther destinations in the long term. Processors are wary of price pressure and therefore prefer to buy onions continuously for the short term. They hope that the purchasing market will see small incremental improvements, which they can then pass on to their sales.
Despite the large harvest delivered from the fields, grower prices remained relatively stable during the harvest. While it's not exactly a goldmine, it is a significant achievement to sell such a large quantity early in the season. This is especially true because other countries consume their own produce first before importing.