At the grower's, the onions aren't exactly exorbitantly expensive for processors. The bale itself still provides a manageable amount of profit for the exporter in the sold onions. Nevertheless, sorters remain cautious in their actions. If anything happens in the onion market, it has to come from the growers.
It's now mid-October, and that's usually the time when farmers who have temporarily moved onions into potato storage want their barns empty. You'd reasonably expect the supply of onions from temporary storage to dry up around this time. It was precisely those onions that both growers and traders knew had to go that created a fairly substantial ceiling in the market. Although not much was offered at once, sorters who were at risk of getting their fingers pinched were still able to obtain reasonably good supplies even after the last of the onions were harvested.
Looking at the calendar, you'd expect most of the onions in potato storage to be gone by now. Several insiders say they're not so sure this will also lead to a drying up of the supply from temporary storage. Emergency storage units have been created here and there, and growers aren't willing to risk keeping the onions there for very long. On the other hand, several traders also indicate that securing a good batch of onions for less than €14 isn't easy, and that €15 for immediate delivery is also a viable option. This is a sign that growers are gaining a firmer footing. It's almost impossible, if not impossible, to secure onions for €16 in November or €17 in December.
Less sharp
Quality is another topic that's coming to the forefront now. We were, of course, quite spoiled—aside from some minor problems with onion sets a few months ago—with no significant issues. A few percent tare was the rule rather than the exception. Things have been different in the past. Perhaps that's why both growers and processors were slightly less alert to defects. Although it hasn't reached alarming proportions yet, some batches with fusarium are still being produced. Especially with late-stage contamination, it can take a while to properly identify the problem. If there is contamination but the fusarium percentage is not too high, you can choose to let the batch fully develop.
Exports to Africa are currently a bit chaotic. Ships don't always depart at the agreed-upon time, so to speak. And with delays and extra ships scheduled to arrive simultaneously, stories are circulating about large quantities of onions either sitting on the dock or not. The most sensible thing we can say about this is that we're fortunate that onion prices have been very stable for weeks. One container isn't much more or less expensive than another. As long as there's enough available, African buyers don't much care whether they come from an earlier or later shipment. After all, the price difference isn't that great.
DCA Baalprijs Onions are not making any crazy jumps
The DCA Bale Price for Onions hasn't shown any significant jumps this week. Traders are trying to squeeze out a bit of a profit now that the purchase price is also surreptitiously rising, but their success is limited. Demand is good, sorters are doing a good job, but the fear of missing out on an order is still deeply felt. Only the middles are showing a slight increase this week.
Read here the explanation from DCA Market Intelligence on the new quotations.