Analysis Onions
Onion Market is starting to feel a bit friendlier
Things are certainly not running smoothly in the onion trade yet. Fortunately, the general gloom among sorters and exporters is dissipating somewhat. After a buying spree from Morocco, it is Brazil that is on the Dutch market this week. However, quality is and remains a thorny issue. This results in significant price differences, both at the grower level and within the bale. Read more about developments regarding bale prices.
Would you like to continue reading this article?
Become a subscriber and get instant access
Choose the subscription that suits youAdding a destination, as is the case with Brazil this week, is good for market sentiment. As a sorter, however, you do need to have suitable onions for that. Brazil is primarily asking for good white 50-70 and 60-80 sizes. Those are precisely the sizes that are already selling reasonably well. In terms of volume, the demand from Brazil naturally doesn't turn the Dutch market upside down immediately. To be fair, anything extra you can do is always a nice bonus.
Some exporters remain somewhat cautious regarding Brazil. Primarily because they require sizes of a quality that is already scarce. Another factor is that some have paid a price in the past for claims from the South American country. It is certainly not certain that something like this is about to happen again, but it has made some exporters rather apprehensive.
Supply of Austrian decreases
Another bright spot worth mentioning is that the price for sorted onions in Austria has taken a step up for the second week in a row. "The supply of Austrian onions is steadily decreasing, while demand is increasing," writes the Austrian Chamber of Agriculture. The quality of Austrian onions from cold storage has been consistently satisfactory to very good this season. According to the Chamber of Agriculture, the fact that the price for Austrian onions is on the rise is mainly due to increased export demand. Compared to three weeks ago, the quotation has increased by €5 to €15 to €18 per 100 kilos sorted in crates. Lower quality onions are being traded at lower prices, the Chamber of Agriculture notes.
In the Netherlands, the quality range—and consequently the price range—is and remains very wide. Triples and finer medium sizes are difficult to get rid of. If the color has faded, if there is even a hint of a budding sprout, or if they have been sitting in front of the drying wall at the sorter for some time, they are offered at dump prices. Is that the market? No, most would say, but those are the prices buyers are waving around. A good quality 50-70 is also a medium size, but can easily be €5 or more expensive than a mediocre 40-60 or 45-65. There aren't a huge number of coarse, but especially supers, this season, and that is reflected in the bale price. The large sizes are taking a small step up.
Read here the explanation from DCA Market Intelligence on the new quotations.