The Dutch onion market is showing its capricious side.
Which onions were collected in the Netherlands, what can be exported for the new year, and what will the market do as a result? Opinions on this matter are quite diverse. Regardless of how it is evaluated, significantly more onions have been planted, which means that the harvest is relatively large, even with average yields. Apart from the amount of onions in the German border region, some of which probably also end up in the Netherlands. With large harvests, a high level of exports is needed to maintain market cleanliness. Exports of over 37,000 tons in the 37th week were encouraging in this regard.
Onions may be there, but producers must also want to sell them. Keeping the size of inventories a secret is not in favor of buyers. The fact that growers do not want anything at all is certainly not a problem. The overwhelming supply of onions in temporary storage - which must disappear because potatoes are coming and on which some players took a bit of a risk - is also not a problem (yet). Both farmers and packing companies are simply realists in the game and it's a bit of giving and taking from both sides. The fact that producers do not admit to everything is a sign of what is to come, according to some insiders. The situation would have to be very crazy if we are to repeat the last two seasons with record prices. However, it is by no means certain that large harvests will result in a season of low prices.
Position or lack thereof
Players are busy in the background with who will have a position and who will not. If someone says that the market may still rise in the coming weeks, his colleagues quickly say, "He has stored onions that are definitely too expensive." If someone else says the market will fall, the comment is, "He has no onions and is trying to lower the producer's price." That's always the case, but now it looks a bit worse. Or at least it is being talked about more openly.
Export was somewhat calmer in the 40th week. A ship was loaded for Senegal, but it sailed at the beginning of last week. And most of the onions in this direction were sent in the previous week. Some sorters complain that orders often come at the last minute. As a result, it is sometimes a trial and error method to have everything ready on time, while the total number of tons you do in a day is not even spectacular. In addition, there are the last onions from outside the country, which also add extra work.
While producer prices are slightly rising, DCA quotations for bagged onions are under slight pressure. The lower end of the quotes remains stable, but the upper end is giving in slightly. Supers are difficult to obtain, even though there is no spectacular demand for them. Overall, onions are not too thick this year.
DCA quotes for bagged onions:
Bagged onions 35-50 mm: 18 euro/100 kg; (-2.7%);
Bagged onions 45/65 and 50/70 mm: 20 euro/100 kg; (-2.4%);
Bagged onions 60-80 mm: 21 euro/100 kg (-2.3%);
Bagged onions +80 mm: 23.50 euro/100 kg (-2.1%).
Stock exchange quotes:
Exchange Goes
Goods with 30-60% content of thicker onions (from planting)
11 euro/kg (+2.3%);
Goods with 60% content of thicker onions (from planting)
11 euro/kg (+2.3%).
Exchange Middemeer
Goods with 30-60% content of thicker onions (from planting)
10.50 euro/kg (+2.4%);
Goods with 60% content of thicker onions (from planting)
10.50 euro/kg (+2.4%).
Exchange Emmeloord
Goods with 30-60% content of thicker onions (from planting)
9 euro/kg (0%);
Goods with 60% content of thicker onions (from planting)
10.50 euro/100 kg (-4.5%).