Rain adds momentum to onion market

Limited availability is creating more tension in the Dutch onion market. Rain has improved lifting conditions in many areas, but has also disrupted harvesting last week. With some sorters running low on stocks, good-quality onions that are readily available are in demand. Some rain was badly needed in practically all of the Netherlands. For onion growth it is certainly too late in the south of the country, but rain was also needed for lifting. The fact that there were few opportunities to lift onions this week also creates a different dynamic in the trade. It fits somewhat in the overall trend of this year, but again the least rain has fallen in the far southwest of the country. In parts of Zeeuws-Vlaanderen, Walcheren and Noord- and Zuid-Beveland, barely enough rain has fallen to allow growers to lift under reasonable conditions. In other parts in the south of the country lifting would be possible, but the occasionally heavy showers also make it difficult to get a full day’s lifting done. This week there are a few drier days in the weather forecast, but whether that will be enough to lift large volumes of onions remains to be seen. Several processors are meanwhile running quite low on working stocks. Given that seed onions appear to be arriving reasonably on time this season, some sorters have been cautious about securing large volumes of onion sets. Another factor is that as a processor you naturally have to have the space to store the onions.Quality Growers who can supply good-quality, dry onion sets from storage are now benefiting from that. Quality problems are more the rule than the exception. If a processor has entered into commitments but the onions turn out not to be suitable after all, it is not easy to get hold of a replacement lot. As a grower you do have to be able to deliver the quality, but then you can benefit from supplying onion sets. There is, however, little difference in price between sets dry from storage and seed onions. Prices of €0.25 per kilo and slightly above are fairly common.Although it is difficult to get onions that are ready for sorting and several sorters are running out of stock, packed onion prices have yet to show much movement. Exporters have quite a few concerns about Senegal. Four ships are either on their way or have already arrived and a considerable number of containers have already arrived as well, but the border is not open yet. There is a large volume of early onion sets among these shipments and it remains to be seen how they hold up. Of course, the usual game between growers, sorters and exporters is playing out.The DCA Packed Onions Benchmark Price rises by €0.50 for the medium grades. These grades account for the bulk of current trade. There is also a slight increase for jumbo onions. Small onions are proving more difficult to trade. The price range in this segment is very wide.