Things often turn out differently than you expect. This also applies to the onion market. It's normally the busiest time of the year for onion sorters, around late November and early December. This season is different. After the peak weeks relatively early in the season, the market is feeling a bit calmer. Growers, sorters, and exporters are being brought back down to earth.
Compared to potatoes, wheat, and what appears to be beets, the onion market is still quite reasonable. A price of €17 or €18, as is common this week, isn't very good, however, according to many growers. Especially considering that a few weeks ago, prices of up to €20 were being asked and paid for December delivery.
Many sorters secured their onion supplies in late October and early November. Exports were booming, and the expectation was that the bale price would naturally approach €30 by December. In reality, however, things are proving difficult, and instead of maintaining the upward trend, there's a slight correction. That's nothing to panic about, but if your purchase price has been too high compared to your sales, it can be quite painful.
Mass was cash register
It's onion logic, but according to various sorting companies, a thin sorting margin was compensated for by the large volumes being shipped, the "bulk equals cash" principle. The volume is also a bit different this week. Of course, a processor always claims to be busy. Agency exporters say it's no problem to fill a last-minute order. A substantial volume of onions is indeed being shipped, but several insiders indicate they don't expect us to come close to, let alone exceed, 40.000 tons this week.
Most processors aren't yet concerned with the post-Christmas period, or perhaps more accurately, they don't want to be. Exports to Senegal and Ivory Coast are a bit more difficult, and then there's the news that the border will be closed on January 1st. That's a scenario you should definitely consider, but in the past, we've often seen Dutch onions from West Africa being heavily imported in January, sometimes in individual containers. Most sorters don't have that many onions on their books for January. This may offer hope in the coming weeks for growers who recently forgot to accept offers for onions suitable for African destinations.
The onion market is a buyer's market this week. This applies to both farm gate and bale sales. Bale prices are under some pressure this week.
Read Here the explanation from DCA Market Intelligence on the new quotations.