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Onion Expert

What Is The Onion Market Doing?

Shay Myers - Saturday, September 13, 2014

As always, the weather, the market, and various parts of the business world can greatly affect the onion market. Here is the Onion Market update as of September 8, 2014:

 

Market: Packing is at full swing at most packing sheds here in the Northwest. While harvest is just beginning here in the Treasure Valley, Washington has been going hard for about a week.

 

Yields: Yields in Washington are about average somewhere in the 700-750 cwt range. Harvest is approaching the 25-30% completion at this point. Reds and whites are the bright spot in the market with prices in the double digits for whites with reds not too far behind.

Yields in Idaho/Oregon have been a bit light to start with, mostly as a result of IYSV and lack of water. Many shippers are offering smaller sized onions than what they are used to. This is adding some down pressure to the market, especially among the smaller sizes.

 

Freight: A continued lack of drivers continues to demand very strong freight prices. Prices are similar, at this point, to what they were during this time last year, but there is even less negotiation when it comes to rates. East coast rates for refers can be as high as $8-$8.50 for refrigerated trucks. If you are able, utilizing flat beds at this juncture in the season could save you as much as 15-20%.

Water Situation in World’s Largest Onion Growing Region

Shay Myers - Friday, July 04, 2014

While California is short on water, as far as onions are concerned, it looks like they will not be short on supply.  Much like the case in many onions regions, onions are the number one cash crop and consequently are the last to go without water. 

 

 

 


Oregon and Idaho are in similar situations as far as water is concerned, although the NW is much further from harvest compared to California.  In the Snake River Valley that runs through Eastern Oregon and Western Idaho, there are thousands of acres left fallow this year.  That doesn’t mean there are no onions planted in valley regions though.  In fact, it is because of these fallow lands that many farms are still hoping to be able to finish their onion crop.  By taking water normally allotted for these fields that are not being irrigated, they are hoping to finish their onion crop.  It is not so much a question now of the quantity of water available to these farmers, instead it is a function of the length of time that the water will be flowing for irrigation.  Some estimates are saying July 27th others are speculating water availability until August 10th.  It doesn’t seem like much, but the 14 days in difference between the 27th of July and the 10th of August will literally make or break the onion crop on thousands of acres.   


Transportation is currently a major issue and will continue to be a MAJOR challenge for the foreseeable future.  Reefer rates from California to East Coast locations are as high as $9,000 -$10,000 and even more so are hard to find.  Railex is helping to alleviate some of this pressure for those that can use its service.   

   

Prices have firmed up significantly on all colors and sizes over the past 2 weeks.  This is due in part to the Imperial Valley finishing up and reduces the number of shippers with product available for shipment.  July is traditionally the most expensive onion month of the summer with low double digits quite common.  It looks like this may be the case this year as well, but only time will tell.     

What is the onion market doing?

Shay Myers - Friday, April 04, 2014

Supplies in the Northwest are down again with total daily shipments well below 200 loads.


That is just 70% of just 2 weeks ago. Supplies are very manageable, but higher prices and fear of the potential the downside has many buyers staying away from the phone. Instead many are buying short to avoid any potential risk. NW supplies will be available for another 2-3 weeks; after which Southern Texas and Imperial Valley California will enter the market. Prices may spike up again between now and then, but only if there is significant rainfall in either of the two areas just mentioned.

 

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Planting has just ended in the Northwest. This field E. Oregon will be ready for Harvest in Mid-August.


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