Analysis Onions
A short work week does not help the onion trade.
Things are not running very smoothly on the onion market. This applies to trade between growers and exports. Differences in quality are partly to blame for this. The fact that we are currently in a week where the Netherlands celebrated King's Day while the rest of Europe celebrated May 1st is not creating any extra excitement. In fact, various sorters and exporters report that things are too quiet for comfort. Read more about export demand and onion pricing.
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Choose the subscription that suits youThe spread in onion prices at the grower level is wide. By now, this also applies to the bale price. The relatively warm weather is not doing the quality of the onions any good. In the storage shed, the grower is still managing to keep them sufficiently cool, partly due to the cool nights. Loading at 20 degrees and then hours on the truck, sorting, inspecting, a quick stop at the drying wall, and finally packing—if you have a batch that is already falling off easily or contains a sprout, you will find that out completely now.
That partly explains why some sorters cut corners, especially for sizes that don't sell very well. Whether that is the right approach is debatable. After all, a lower price does not necessarily mean increased demand.
Import
Demand from abroad is somewhat lacking. England, Spain, and Portugal remain in the market for coarse and supermarkets, but according to some insiders, it is likely to decrease rather than increase.
According to some sources, some English buyers also have onions from New Zealand on their schedule. Meanwhile, Egypt is also knocking on Europe's door a little. Not that serious volumes are entering the market yet, but it is being used to temper the mood somewhat.
Eastern Europe is only entering the market for Dutch onions in small quantities. According to insiders, they can get even cheaper onions closer to home. A positive point, however, is that onion prices in Austria are on the rise. The Austrian Chamber of Agriculture (Landwirtschaftskammer Österreich) is quoting €18 to €22 this week for sorted onions loose in crates.
It is difficult to accurately reflect the bale price in the DCA Bale Price. A lot of medium 45-65 bales that has been sitting for a bit too long commands a very different price than beautiful 50-70 bales suitable for long-distance export. Coarse and super onions are selling well in general, but some exporters note that you certainly can no longer charge a high price for a good onion. The lower quality that is also present is dragging the market down somewhat as a whole.
Read here the explanation from DCA Market Intelligence on the new quotations.