Onion exports above 20,000 tons keep prices low and stable

The export demand for onions is running more sluggishly this week than last week. Where there was some hope last week, that has been dashed again this week. That is putting selling prices under pressure once more. In itself, exports have been doing remarkably well since Senegal dropped out in January. Where buyers sometimes drop out, other destinations step up with new requests for Dutch onions. Water damage caused more demand for Dutch onions in Spain. After that, Morocco suddenly needed onions because of a shortage in the local market. In recent weeks that demand fell again, but at that point Brazil was just knocking on the Dutch onion door. Lots of volume, low prices After a strong start in the first half of the season, exports are also maintaining the pace in the second half. Weekly exports are above 20,000 tons and as long as that continues, volume will remain at a good level. Prices, quality and margins, however, leave much to be desired. Total exports up to Easter have risen to 1.15 million tons. This means export volume for this season is clearly higher than in previous seasons. The season runs until the end of June and with this interim result exports are on course to break the record from 2021/22. At the same time, sellers are facing a dip in export demand this week. Where more demand from Europe was expected in April, that is hardly materialising. Spain did order substantial volumes, but Eastern Europe is barely showing up. The European market is fairly empty Still, onion sellers believe the European onion market has become fairly empty. In addition, mediocre quality is playing a role everywhere. Last week some shipments were ordered here and there, but additional requests have so far failed to materialise. Buyers may be waiting first to see how Dutch quality develops. Another factor may be that transport is expensive and difficult to organise. The DCA Benchmark Price for Packed Onions shows minimal differences this week compared with last week. Where the quotation differs, it concerns rounding differences. Export demand is weaker than last week, but prices remain stable at this low level.