Strong demand for yellow onions, reds lag behind

The sales of yellow onions are proceeding at an exceptionally high pace, while there is little to no interest in red onions. Yields of yellow onions look very good on average, while the net kilograms of red onions from the sand fall short. The producer prices on the regional exchanges stabilize at a level of around €13 to €14 per 100 kilograms. The only movement that can be observed is that the finer quantities on the market in Emmeloord have risen slightly. Finer quantities are therefore not inferior to the coarser sorting. For red onions, there are no quotes in Emmeloord. Too few transactions, is the conclusion. Middenmeer quotes €12 to €19 per 100 kilograms. The price has been reduced by €1 at the lower end compared to last week. Goes reports unchanged €15 to €18 for red onions. A trader reports that the tare determination of red onions from the sand is disappointing. He is dismayed by the net kilograms remaining. He signals a lot of trips and also fusarium. After deducting the tare, yields are very disappointing, he says. With yellow onions, there are also some issues here and there, but the yields look good overall. Large export in quiet week In a week considered quiet, such as the third week of September, a total of 36,500 tons of onions have been exported according to preliminary figures from KCB and GroentenFruit Huis. This indicates that processors do not need to exert themselves excessively to export such large quantities of onions nowadays. They are certainly large quantities crossing the border. In the first twelve weeks, a record volume of 330,000 tons has been exported. This amount is 75,000 tons larger than during the same period last year. Thus, the export has gained a lead of 29% over last season. Despite the enormous sales, sorters, packers, and exporters are unable to slightly raise the sale prices. On the contrary. Exporters know how to buy sharply and keep the price formation under pressure. As a result, the margins for sorters and packers are gradually coming under threat. Purchasing is rising slightly Purchasing is indeed rising slightly. The offshore period has been completed, with a few exceptions. This means that onions from temporary storage are now in order. To secure these onions, buyers must quickly make a bid of €14 per 100 kilograms. Although transactions have been reported at €13 and €13.50, that is becoming more difficult. The DCA Benchmark Price Packaged Onions for the medium size fluctuates between €19 and €21 per 100 kilograms. The quote for this week remains at €20 per 100 kilograms. However, we see the prices of the different grades coming closer together. The premium for coarser onions has thus become slightly smaller. The expectation is that purchasing prices will continue to rise in the coming period. For November and December, prices are mentioned between €16 and €17 per 100 kilograms. In order to pass these prices on to sales, prices in export must also increase. It is important that the balance of supply and demand remains as good as it has been in the past period. Little purchasing for the long term For the period from January to March, prices are reported between €20 and €22 per 100 kilograms. It is noted that these are deals for sales to supermarkets. For export to further destinations, very little has been purchased in the long term. Processors are wary of price pressure and therefore prefer to continuously buy onions for the short term. They hope that the purchasing market makes small upward steps and that they can then pass that on to their sales. Despite the large harvest that has been delivered from the fields, producer prices remained reasonably stable during the harvest. Although it is not a gold mine, it is a significant achievement to sell such a large quantity early in the season. Especially since other countries first consume their own products before moving on to imports.