Blake Branen Rosencrantz - Tuesday, March 11, 2014
Onion update 3.11.2014-
All sizes and colors are up another 10-12% over last week
Prices WILL continue upwards for the rest of the week
Mexico is crossing loads but still at much lower than normal levels
As of the 10th, Mexico has crossed 678 loads.
Down 2,104 loads when compared to last year.
Texas is getting closer to starting
Vidalia looks to have an April 15th start, at earliest
Imperial Valley Shippers should begin May 1
Many western shippers are finishing up for the season
Central Valley growers have major water problems
In a nut shell, this wild market isn’t over yet and it may be sometime before it is.Texas is still behind due to colder than normal growing conditions.Recent reports in the produce news speculate that they will begin packing there within the next 2 weeks or so.The advantage for Texas growers at this point is the lack of competition in the sweet onion markets.This again is due to Mexico’s much lower volumes and it is also due to the Vidalia onion region entering the market weeks later than normal.This will allow the Texas growers to market their onions over a much longer window of time.So then, the question remains, will Texas’ entrance into the market cause prices to come down? Probably not.It is more likely that the prices will stagnate some when Texas first comes in to the marketplace.Then, after buyers and sellers have the chance to assess the availability and quality of the onions, prices may change
The argument some will make against lower prices and relief in the market is quite simple; just as additional growing regions come into the market, the Northwest will be getting out.Until New Mexico and the Central Valley of California begin shipping, there simply won’t be enough availability of supply to cause prices to come down.