A slow demand is leading diminishing price bulbs to sit for buyers stake

Demand for the national onion produce has been falling WoW since the beginning of April, and the tight competition with Argentine and Chilean bulb imports are leading prices to tumble further, closing at 8% down average at the wholesale from week 12 to now. As there are still large onion stocks available in cold chambers, buyers are keen to wait for further decrease in the hope of better rates for the replenishing program.

Chilean product at the other hand is currently higher than the local produce due to the better quality and stability of gauges used on retail. Domestically the Northeastern produce resumed a good yielding this year, of which it prevented further shipments from Santa Catarina to the upper states, even with the Northeastern volume not being so high it worsen the supply scenario in the short term. In addition, the reduction in purchasing power at the end of the month and the restriction of income are also factors that slightly contracted consumer demand for the last couple of weeks.

Thus, market liquidity is deemed to be reduced, and this behavior is affecting producers all across the board. The quality in Santa Catarina was of a fair average classification, and the price is closing at USD 0.42/kg at the farm gate.