More confidence from growers in onions than from sorters

The onion processors have all started up again this week. Especially in the first half of the week, there was quite a demand for onions due to two boats for Africa. Opinions among growers and processors about how things will go in the coming weeks vary greatly. With tight working stocks and some hindrance for transport due to the winter weather, there was a buying round for the growers. Especially growers close to a processor and who can load inside were able to achieve a small gain this week for immediate delivery. The fact that quite a bit was purchased this week bolsters the confidence of growers. It has been said before, the onion harvest in the Netherlands was good, but whether all those onions will come out of storage well is another story. With optical sorting, processors are more capable than a few years ago. There are limits to what is possible. Especially the percentage of wet that smears can be a dealbreaker in some batches. Growers with really good large onions know this too and are still reluctant to part with them. When processors inquire during a week like this, they are supported in the idea that there might still be more in store later in the season. Expensive stock Buyers are being much more cautious. Various processors are currently working on stocks that were purchased at the end of November or early December for €18 or €20. There are often also some cheaper onions in contrast that were purchased recently. The average purchase price thus remains too high if you get an average of €20 in the bag according to various sorters. For the longer term, starting from delivery at the end of February and March, some sorters would like to secure nice Southern Europe suitable onions. There is still a gap between what the growers ask and what processors are willing to give in many cases. “It could easily be that €25 for large onions is the market heading into spring, but I don’t dare to take that gamble. It wouldn’t be the first time the market remains stable or comes under pressure,” said a sorter. The DCA Benchmark Price for Packed Onions remains reasonably stable on average. The three-layers and medium sizes are under pressure, and at most sorters, the largest volumes are still being handled there. There are not many supers, also because there is less activity than a few weeks ago. It is the larger sizes that are in demand. The price holds firm for those and even sees a modest increase.