Analysis Onions
Good demand for onions keeps onion price steady
The sentiment on the onion market remains cautiously optimistic. Some growers and sorters seemed to think in December that no onions would be sold after the new year. That turned out to be unfounded. This week, the demand for onions is good and the DCA Benchmark Price for packed onions remains stable. However, this does not indicate the price trend for the rest of this month.
The first half of the onion season traditionally focuses on Africa. This demand does not immediately decline after the turn of the year, but we do know that the border of Senegal will close. Whether this happens a week earlier or later is quite decisive for the sentiment on the Dutch onion market. The fact that Christmas and New Year's Day fall on weekdays may be positive for exporters. Around this time, exporters sometimes fill up docks in anticipation of a border closure. Exporters have had less opportunity to do so now. It may be wishful thinking, but because fewer onions have been stocked up now, there is more room to ship onions to Africa later this month according to some insiders.
If the border remains open until the end of January, there could be another round of purchases from Dutch growers. Sorters traditionally prefer not to hold too large work inventories for January. If the demand from abroad continues, they will have to hit the road again.
Europe informs
Although Africa is the main focus for the Netherlands now, some sorters also point out that there is interest in Dutch onions within Europe. Polish peelers easily take the lower-grade batches. The downside is that they are keen on price. Beautiful large white onions find their way to Southern Europe. However, these are not the large volumes we are used to from African buyers. Overcapacity at sorters in the second half of the season could potentially hinder this.
The DCA Benchmark Prices for packed onions remains largely unchanged this week. The triplets are the most noticeable. Some sorters have too many of them and offer them at very competitive prices, while others maintain the price because they have few in stock.
