Analysis Onions
Contradictory signals on the onion market
The export figures and the mood on the onion market do not match this season. Exports are good and (in volume terms) still on track to set a new record. If we look at the prices, a downward trend is visible.
This season - up to and including week 46 - 583.517 tons of onions have been exported. With an export of 43.518 tons, the magic barrier of 40.000 tons was broken in this last week for the second time this season. All in all, a sign of healthy demand for onions. However, the picture on the regional stock markets is less positive. Prices are on a slide down. The average quotation on the regional stock exchanges is now below €10, at €9,75 per 100 kilos.
That is a psychological limit for growers. 'You should always be able to make a dime in this market' is a frequently heard cry among growers. Bale prices are also falling and are almost €4,50 below the five-year average. Compared to last year, a negative difference of €12,50 is even visible. That is a season with which this season (in terms of export) can best be compared.
Good export, but big harvest
The onion acreage was expanded considerably last season, although the yield per hectare was not an absolute winner. Nevertheless, it results in a record quantity of onions above the market. That affects the mood. Last week, Senegal - the largest buyer of our onions - announced that it would close its borders on December 31. This happens every year during this period, but it also means that the last onions have to be ready for transport at the exporters around December 15.
The question now hanging over the market is: what are growers going to do? Do they get nervous and still want to sell on the assumption that the market will sink further or do they expect a rebound in the second half of the season.
Jurphaas Lugtenburg
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