DCA Benchmark Prices for Packed Onions come under slight pressure

The upward trend in the bale prices of yellow seed onions is interrupted. There is a slight increase in the DCA prices of packed onions this week, but that is mainly because the prices rose a bit at the beginning of the week. The sales are starting to sputter. Large volumes are still crossing the border, but the onion flow is currently somewhat less than in the past weeks. It quickly becomes routine when gigantic amounts of onions cross the border each week, but now and then the export runs into a hurdle. And that is the case at the moment. It certainly does not mean a knockout, but the atmosphere has changed somewhat. The unprecedented pace of the past weeks fueled the thought that there would be a surge in the Dutch onion export just before Christmas this year. That would rapidly lift the prices of the average onions above a quarter per kilo. However, the market proves to be more stubborn. Slightly declining market price A very positive mood ensured that the price of packed onions for the average started this week actually rising towards 26 cents per kilo. Some trades were done at a level of 25.75 cents. Throughout the week, these prices proved no longer achievable. An oversupplied market in West Africa tempered the optimism and caused the bale prices to drop. By the end of the week, the bulk was traded for 24 to 24.5 cents per kilo. It is expected that this will also be the case throughout next week. First, the stocks in West Africa need to be somewhat cleared before the flow picks up significantly again. With Christmas approaching, exporters expect that there will only be a brief reset. After that, the pace will increase again. How long the pace of export to West Africa remains high is still a question mark. Exporters and packers point out that the border of Senegal will officially close for import onions as of January 1st. This has also been the case in other years, but now some exporters believe the new head of the market office will hold firm to this. On the other hand, there is an early Ramadan this year; from mid-February to mid-March. This could mean that Senegal will turn to import onions for a longer period, as their own harvest in February and March may not be sufficient to meet a large demand. Poolprices PPA In the meantime, PPA has announced the pool results for delivered yellow and red seed onions from the 2025 harvest. The average price for yellow onions has been set at €11.15 per 100 kilos. For red onions, the pool price is €14 per 100 kilos based on an average of 70% coarse onions. The yields were higher than in previous years. The ample supply and a declining market sentiment exerted pressure on price formation.