Onion prices take the next step up this week

This week, the regional trade fair in Zuid is the first to set the top end of the range at €16 per 100 kilos for onions with more than 60% coarse content. This pushes the price up a notch even further than Emmeloord, which was the first to reach €15 per 100 kilos last Thursday.

Growers are confident that the onion market should recover. Despite high production this year, price pressure on onions delivered directly from the field remained limited. Buyers initially expected these onions to be sold en masse for €10, but due to high demand, a price drop to that level did not occur.

Many onions were bought for €12 per 100 kilos, but as the end of the harvest approached, the price slowly but surely rose. The supply of onions from temporary storage was also quickly absorbed due to the high demand, so those onions didn't drive down the price either.

Now that the market is running out of urgent supplies, buyers are forced to bid more to replenish their working stocks. And in a rising market, sales prices for sorted onions will also have to rise to maintain margins.

Prices for later deliveries will also rise, although many buyers are currently keeping their purchases relatively close to sales. This means buyers are remaining cautious for the time being to minimize risk. However, onions are already being purchased for December or early next year. Onions for December delivery are trading at €17 to €17,50 per 100 kilos, with or without participation. Prices of €21 per 100 kilos are being mentioned for January/February, and €22 per 100 kilos for March. As far as we know, these are batches suitable for delivery to the retail sector.

Little interest in red onions
Sales of red onions are proving more difficult. Few transactions are known for this variety, putting pressure on prices. The Zuid stock exchange is lowering the price by €1 to between €14 and €18 per 100 kilos. For red onions, only a few parties are currently able to capitalize on the high demand for yellow onions.