Storage onions not doing well in the market, and transactions between buyers and sellers deadlocked

Export prices of yellow onions affected by sluggish demand in foreign markets

At this stage, late-ripening onions in Gansu are coming to the market on a large scale, and the sales of Ulanqab in Inner Mongolia are gradually increasing. A new round of onion storage work is underway, but due to the strong wait-and-see mood of storage companies, some growers are reluctant to sell high-quality products, and there is a stalemate between buyers and sellers.

At present, the sources of products circulating in the market are mainly stocked goods in Shandong and fresh onions from various producing areas in Gansu and Northeast China. The domestic market demand is dominated by shallots, the supply is relatively loose, the specifications are complete, and the price has not changed significantly recently. After the Mid-Autumn Festival, all kinds of vegetables in the market are slow to sell, and the overall price level drops, but the impact on the onion market is not obvious for the time being. The market lacks a sustained positive boost in the short term.

This year, the willingness to store onion is not very strong, and some storage companies have moved from Gansu to Inner Mongolia. At present, most growers in producing areas that have longer daytime are generally conservative in their sales, and traders for storage are in a strong wait-and-see mood. The transactions between the two parties is slightly deadlocked. There is still great uncertainty in the later stage of the onion market:

First, as of mid-September, yellow onion prices in Gansu did not meet the expectations of most market participants. According to the survey on the mentality of growers, agents, and storage companies at the end of August, most people are optimistic about the market outlook of yellow onion and believe that the price of yellow onion will increase significantly in mid-September. However, the price of yellow onion is greatly affected by exports, and the foreign market demand is limited, and there is no certainty of a sharp rise in the short term.

Secondly, the onion production in the long-day sunshine area has not decreased. Although the yield per hectare has decreased, the planting area has increased, and the overall supply is still relatively abundant. Last year, storage companies suffered serious losses, and most of them are more cautious this year. However, due to the relatively low cost of storage, there are many new players participating in the market, and their ability to resist risks in the later stage is not clear.

Finally, there is a certain increase in onion varieties in the Yunnan and Sichuan-production areas. Onion planting in the short-day sunshine area has made considerable profits this year. It is currently in the stage of raising seedlings for the new season, and some areas are nearing the end. There is a period of overlap between the inventory in Gansu and the fresh onion in Yunnan. If the production area in Yunnan increases, it will not be conducive to the price increase of the inventory in the later period.

Source: index.mysteel.com


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