Analysis Onions
What does the DCA Packed Price for onions do?
Busyness everywhere at the onion sorters. A lot of work in the onion sector is more or less synonymous with a good mood. Not entirely unjustified. There is no need to search for customers. What does this mean for the DCA Packed Onion Price?
Senegal and Ivory Coast are pulling hard on the Dutch onions. However, the demand is broader, according to various exporters. Exporters supply onions from Asia to Central America. This is a sign of a healthy market according to various traders. A few weeks ago, some buyers were still afraid that higher prices were mainly driven by growers. By now, we can cautiously conclude that demand also plays an important role.
Trading at the grower is smoother than we were used to in the last two years. Last season, at this time, there was, so to speak, €5 or €10 between bidding and asking. Now buyers and sellers are much closer. Grower prices maintain the upward trend but without crazy jumps. A steadily rising market generally makes it easier to do business.
Less exciting
The fact that prices across the board are a bit lower than last season also helps. 'Last year we were playing for the bank,' say various traders. The amount in a container is now about half or a third lower than last year, making it a bit less exciting. 'It always remains to be seen whether and when you will get your money from exotic places,' says an exporter.
Although the mood is predominantly positive, some sorters still have a critical word about the margins. Opportunities to buy really advantageously in relation to the bale price have hardly been available. According to insiders, it is a traditional cost-plus year for both growers and sorters, with, if you pay attention, still a very decent plus.
The DCA Packed Onion Price does not give much reason to complain, especially when considering that most sorters are handling serious volumes. Especially the mediums are taking a step this week.
