Analysis Onions
Growers firmly control the onion market
For most Dutch arable farmers, onions are one of the most volatile products they trade in. The market's volatility is once again confirmed these weeks. After weeks of mainly watching each other and doing little, relatively many transactions were made this week.
Nice large onions are what the trade is looking for. And if you have such onions in storage, then €20 is not far away, or has already been offered. Several sorters are hesitant, but ultimately the fear of either running out of onions later, having to buy them at a higher price, or losing out to a competitor weighs heavier. If multiple interested parties approach a grower to come and inspect the onions - whether they are truly serious or just trying to estimate what's left - it gives the farmer the extra confidence to stand firm.
After a somewhat lean period from the second half of January to the end of February, growers are starting to wonder if the onion market can take another step forward. Rumors are swirling; there are reports of prices ranging from €22 to €25 for delivery at the end of April or in May. However, this concerns onions from box storage with mechanical cooling.
Wide range
We are mainly looking at the top end of the market, but if the onions are slightly smaller or the color is off, prices below €15 are still in play. The category in which the onions fall sometimes leads to differences of opinion between potential buyers and sellers.
The bag price cannot really keep up with the grower prices. Demand is good for 60-80, 70, or 80 on, and it is possible to add a little extra in the bag. The main issue for most sorters is the marketing of broiler and prepack. Customers can be found, but they are very price-sensitive.
Read here the explanation from DCA Market Intelligence on the new quotations.
