Analysis onions
Bottom package price not reached, interest increasing
The dark clouds are not yet clearing on the onion market. The DCA Package Price Onions continue to be under pressure and take another step back this week. However, exports are starting to take shape and exporters and sorters are enjoying a lot of interest. They want to quickly switch from onions grown from sets to seed onions.
The harvest of set-grown onions is progressing and the supply is not decreasing. Additionally, the seed onion harvest has started. Sorters and exporters want to move to seed onions as soon as possible due to better quality. This allows deals to be made for further destinations. On the other hand, the time for set-grown onions is far from over, causing the markets to compete with each other.
Planting onion market further declines
There are still quite a few set-grown onions in the market, both batches that have a buyer and those that still need to find one. The latter is not always easy. Especially batches that have to travel a longer distance to the sorter or have an average to finer sorting. The market in Goes quoted €10 to €12 per 100 kilograms for set-grown onions off the field on Tuesday, but the reality today is that these amounts are no longer being earned. A coarse, good batch of set-grown onions for immediate loading can still be settled at around €10, but prices of €6 and €8 are more realistic according to various growers and traders. The set-grown onion market is further declining.
It remains a matter of supply and demand, and that balance is quite off in the yellow onion market. The sales are not that bad at the moment, and sorters and exporters, for example, have been operating at a decent pace this week. Especially considering that Senegal has shown limited interest so far. It is expected that the Senegalese borders will open for Dutch onions in the second week of September. Orders for next week are also increasing according to sorters, but the supply of set-grown onions is simply too large. In addition, seed onions are available.
Bale prices take another step back
The package prices take another decent step back this week, as shown by the DCA Package Price. This does not happen all at once, but gradually as the week progresses. Earlier this week, the package prices were slightly higher than they are now. On average, the medium and coarse size sorting range between €18 and €20 per 100 kilograms. The triplets go for slightly less and the supers, which are relatively limited available at the moment, go for €20 or more. However, the range remains wide and it depends on the destination. Seed onions are still being processed and packed to a limited extent, and their package prices are a few euros higher.
Exporters and sorters are enjoying quite a bit of interest from various parts of the world. With the current package price, there is good competition and we are participating in almost all places in the world. It is just a matter of waiting for seed onions that are qualitatively better suited for all destinations. In addition, stability is being sought in the Dutch onion market. When the onion market is stable, it also gives the buyer peace of mind and they take on a less wait-and-see attitude.
Bottom price
According to sorters and exporters, the bottom has not yet been reached in the market in terms of package prices, despite increasing orders and interest. It is expected that the package price will take another step back next week, although the moderate sentiment seems to be improving a bit among sorters and exporters due to the high interest and increasing orders. However, the supply continues to hold the reins for now.
