Onion demand too weak to support higher prices

The DCA Packed Onions Benchmark Price really needs to go up, but sellers are hardly managing to make that happen. Last week the market seemed to improve somewhat, but this week it fell back to the old level again. Demand remains too weak to structurally support the market. Since Easter, sales to England have declined. In the weeks before that, the country was the main buyer, with volumes of around 3,800 tons per week between mid February and Easter. After Easter, that fell to just above 2,000 tons per week. It is uncertain whether this export flow will pick up again in the coming weeks. At the same time, a new buyer regularly appears when another drops out. Spain, Morocco and recently Brazil are examples of this. Partly due to demand from South America, slightly more has been paid in the south of the Netherlands for large and good quality lots. This week, however, there were again reports of rejections. According to sorters, growers are therefore trying to ask more for really nice onions. That works out badly for sorters and exporters, who are having trouble keeping selling prices at the desired level. In that light, the signal from the Emmeloord exchange is welcome for companies. The quotation committee lowered the top of the price range to 16 cents per kilo. According to various sorters and exporters, this better matches the current market picture than the quotation from Zuid exchange in Goes, where the top moved up to 18 cents per kilo. DCA Packed Onions Benchmark Price fairly stable Overall, exports are continuing at a calm to reasonable pace at fairly stable price levels. The DCA Packed Onions Benchmark Price shows slight increases this week for medium and coarse, while supers are quoted slightly lower than a week earlier. For the 40/60 millimeter size, around 11 to 12 cents per kilo is being paid. For 50/70 millimeter, that is 13 to 15 cents per kilo. The price for 60/80 millimeter fluctuates around 20 cents per kilo. Jumbo onions are generally traded for 24 to 25 cents per kilo.