In the onion trade, it's often all or nothing. That's perhaps how we should interpret the recent negative mood. Of course, no one knows what the future holds, but some players in the onion world are cautiously suggesting that we might be past the worst for now.
The scenario that the average bale price would rise to around €30 by the end of the year, as many expected, hasn't materialized, we can now conclude. The purchase price of onions from the grower at various sorters is at a level consistent with a bale price of mid- to high-20s €. It's not surprising that processors are quite disgruntled.
Is the bottom in sight?
Gradually, the grower's price is reaching a level that makes farmers wonder if they should even bother. One buyer claims they can secure beautiful onions for €15, while the next says they're "all lots with a story to tell for that price." Most players in the onion market agree there's not much trading going on. There's also limited interest in securing anything for January. Ramadan falls early this year, and that could ensure that demand for onions from Africa remains sustained longer than usual.
Although the mood on the onion market is slightly more positive, the DCA Bale Price Onion is still down a bit this week. Some traders, especially those with medium and large sizes, were trading very sharply.