Analysis Onions
Buyers keep quiet on the onion market
It's almost becoming a monotonous story: the demand for onions from abroad is good, and sorters certainly don't have to be bored. However, there is some shifting going on. Sorters have done their shopping with the growers for December and can therefore keep a low profile. But what does this mean for the DCA Benchmark Prices for packed onions?
Unlike what we have been accustomed to in the past two years, the onion market is not taking giant leaps this time. In fact, the price at the farm is more or less standing still this week. Last week and two weeks ago, several growers tried to get €18 for delivery before Christmas. Sorters are not willing to go along with that. This week, €16 seems more realistic than €17, almost. Of course, if you can find a buyer. Many sorters have their work inventory for December more or less in place and are now limited in the market. Taking a position for January is seen as a big risk. For example, there is some interest from processors for €20 in March, but growers are not willing to agree to that.
Export Limits
The most recent export figure, for week 45, at 32,000 tons, is a bit disappointing. This fits the pattern that is emerging this season. A very good week is always followed by a slightly less good one. Over the last six weeks, the average weekly export is 34,000 tons. It is possible that the total processing capacity has decreased somewhat. According to several sorters, the main bottleneck is the workforce. "You want to keep good people for your company. If you make them work late every night, you'll drive them away," said a sorter. It is also often mentioned that the margins were not such that everything was done to process as many onions as possible. The last overtime hours are the most expensive, and they have to be paid for.
The DCA Packed Onion Price also shows a slight increase this week. Although the peak in onion demand seems to be over, sorters have so much work that they don't mind missing an order. On the other hand, export bureaus notice that it is becoming easier to arrange a few trucks of onions at the last minute for a customer.
