Analysis Onions
Onion market is not following the usual patterns
The sentiment on the onion market became somewhat more positive last week and that continues this week. The planting onions that were still available can largely be shipped on a boat to Africa. Due to the recent rain, things have been quiet with the field onions as well. However, warnings are being sounded from various sides.
Many destinations are interested in Dutch onions. According to exporters, we can practically find buyers at this price level everywhere. The wide variety of buyers brings a unique dynamic. Usually, West Africa dominates in this period and it's mostly bulk work. If there is a customer with specific requirements, a separate batch is set aside for them.
Now it almost seems like the more specialized work is taking precedence and bulk is becoming secondary. To give a few examples: Malaysia, where it's crucial that the onions remain good during long journeys, Italian buyers looking for large white onions, or Israel, where the larger red sizes are in demand. There are enough onions available, but finding a batch that suits the customer who comes forward is quite a challenge.
Fitting and adjusting
The weather isn't entirely cooperating this week either. Plans to load onions penciled in on the schedule could be erased due to the rain. Some still needed to receive plant onions this week but couldn't due to the rain or couldn't replenish the work stock as planned. There is certainly no shortage of onions, but for some sorters, it's quite a task to get the desired sizes and qualities to the customers.
Growers with onions in temporary storage have been able to benefit to some extent. If the onions have been indoors for a while and are dry, sorters are willing to pay a little extra. It's not about world prices, but there's a gap between €8 field onions and €12 dry from (temporary) storage. At least the in-and-out fees are paid.
The big wave is yet to come
Due to the expansion of the onion acreage this season, there is no real jubilant mood. In certain regions, a large part of the onions is already safely stored. In other areas, much still needs to be done. The large bulk of field onions is yet to come. If the weather forecast is correct, next week could bring excellent weather for that. Sunshine, not too hot, and a moderate east wind, you can hardly wish for better onion weather. Such a wave of onions is generally less favorable for the field price.
The DCA Benchmark Price for packed onions takes a cautious step up this week. Triplets are still averaging below €20, but the other sizes are now at or above that level. The remaining planting onions are tougher trade. On average across all sizes, they amount to €15 to €16.
