After weeks of incremental price increases in the onion market, Machiel Boons of the onion commission company Uien Radar reports a brief pause. "The market has been so heated recently that everyone followed the upward trend. Now, experience shows that when prices exceed 20 cents, they tend to rise by nickels, while below 20 cents, they often struggle to move by half a cent. However, we've seen more resistance to bale prices over the past week, and buying activity has noticeably slowed down."
"No one anticipated the recent price surge," Machiel explains. "I did expect a strong demand for good-quality lots early this year, but the surge began in March. There have been instances where onions were sold for 50 cents for June delivery. It seems that yields were lower than expected, or perhaps more onions ended up in Poland."
"I expect many processors will now use their existing stocks first, and by the end of the month, we will see whether another price increase is possible. Some exporters still need onions for the final stretch of the season," Machiel predicts. "But stocks are limited. I currently have only a few growers with free yellow onions, and red onion stocks have completely dried up."
For Machiel, who started as an independent onion commissioner on June 1 last year, it has been a year of getting established. "I initially planned to operate as a one-person business, but now I work with three purchasing partners, each with their own networks in specific growing regions. This allows us to serve even more farmers. In today's market, commission agents are increasingly becoming traders filling orders, but I want to remain a true commission agent, serving as an intermediary between farmers, processors, and exporters. I keep onion growers informed about market developments, including through a WhatsApp service, which seems to be fulfilling a real need."
For more information:
Machiel Boons
Uienradar.com
Mob: +31 641669970
[email protected]
www.uienradar.com