The resumption of exports after a quiet Christmas period briefly sparked a revival, but the realization is sinking in that February, as is often the case, can be a slow period. We're seeing it on all fronts now; it's leading to falling prices in both purchasing and sales.
Prices of 18 cents per kilo are no longer appropriate, concludes the quotation committee of the regional exchange in Emmeloord. Therefore, prices are falling this week. And sharply, too. The upper end dropped by two cents, remaining at 16 cents per kilo. The farmers on the quotation committee had to swallow hard, but they too see no reason to justify quotations of 18 cents.
According to a buyer, the price is more realistic now than it was last week. He bought good onions for 16 cents per kilo back then, and he's still doing so now. In his view, there's no real change in the market.
Growers are seeing things a little differently. They saw the 18-cent price rise on the list last week and drew hope from it that the market would improve somewhat. This week, there's no sign of that. Buyers and commission agents are doing slightly less shopping than last week, resulting in a weaker mood.
While onions are being bought here and there every day, farmers are noticing that fewer inquiries are being made about willingness to sell. Plenty of onions are still available, though currently they're mainly in batches of lower quality. Prices at the lower end of the scale are therefore falling slightly. In Emmeloord, the lower end is set at 13 cents; that's one cent less than last week. It was also reported that onions were sold for 11 cents, but that was for a batch of very fine onions.
Meanwhile, Poland is starting to make a more visible presence on the market. Polish buyers are very interested, but only for products they can snag at very low prices. They're willing to pay 6 to 8 cents per kilo for nice, coarse batches, but for most, they're not willing to pay more than 4 to 6 cents per kilo.
Poland informs more
Last year, Poland was very active in the market clearing out blemished batches. Large quantities were shipped there by truck. This year, things remained quiet on this front for a long time. Therefore, many batches with a high tare content were processed. Machines are readily available to adequately repair the defective batches for export. This does, however, somewhat hinder the sales of good onions.
On the other hand, people hope that demand for those good onions will definitely continue once the European market has emptied sufficiently from April onwards. Occasionally, some batches are already being purchased for April and May, but not in large numbers yet. Processors are cautious and afraid of ending up with overpriced onions. Therefore, they are waiting and buying only what is necessary for immediate sales.