MARKET
Washington:
Derek Ennis with L&M Cos. in Raleigh, NC, told us on Jan. 2 that demand is “very strong” this week. “I don’t know if it’s because some sheds were shut down with a mid-week holiday, but we are seeing very good demand this week,” he said. “The market is increasing as well. It seems that there is a sudden jump in demand on whites, and of course, the demand is good on medium and jumbo yellows, too.” When asked about the market increase and the future, Derek said, “You know, I am cautiously optimistic. The trend could very well continue, but we really won’t know until we have had a full week of packing and shipping under our belts. For now, we do know that demand is strong, and things are looking really good.”
Idaho-Eastern Oregon:
Steve Baker with Baker & Murakami Produce in Ontario, OR, told us Jan. 2 that demand this first week of January is “very good.” He said that’s not unusual for this time of year, adding, “We normally have very strong demand after the holidays.” Steve said medium yellows seem to be the tightest item on in the mix, with the strongest demand. And he said, “The yellow and the white markets are up. I wouldn’t be surprised if the prices will be higher by Friday than they are today (Wednesday).” Baker and Murakami has good availability on all yellows except mediums, and Steve added, “We have good availability on reds. We are very tight on whites, with only mixer availability.” Quality has been very good, and he said transportation has been “adequate for what we are looking for at this time.”
Herb Haun with Haun Packing in Weiser, ID, told OnionBusiness.com on Jan. 2 that the market “feels pretty good,” adding, “We have a lot of demand and a lot of calls, and prices are definitely up.” Haun Packing had a good holiday push, and Herb said the operation was able to “take a couple of extra days off.” At this time, he said, jumbos are “fairly firm, and the price has increased at least $1 in the last couple of weeks.” Quality is good, and Haun Packing is in “good shape to be done by early March,” Herb said. Mediums are tight, and he said whites are definitely on the move.” He still has “a few reds, but they will be mostly for mixers from here on out.” About transportation, Herb noted, “Everyone expects the situation to get a little better now that the holidays are over, and I think the trucks will get back into rotation soon.”
Chris Woo with Owyhee Produce in Nyssa, OR, told us on Jan. 2 he was doing good – “The market is trending upward,” he said. “It started last week between the two holidays.” Chris said, “We tested the waters and asked for a little more for onions, and our customers were accepting.” He said currently reds are steady, yellows will jump up and yellows “will creep up.” He continued, “We have had five months of under-cost-of-production sales, and hopefully the trend will go up even more.” Owyhee has “adequate supplies for reds, short on whites and adequate on yellows,” Chris said. The operation is shipping all sizes and colors now, and he said trucks have been easier to find after the holidays. And, Chris said, “Our customers are stocking up for Chinese New Year, which is early this year on Feb. 3. It’s the Year of the Boar.”
Utah:
Don Ed Holmes with The Onion House in Weslaco, TX, told us Dec. 31 that the market “feels better” as the New Year breaks. “The truck deal over the holidays is always tight, but they should be getting back in next week.” The Corinne, UT, deal has “manageable supplies to run into late January and maybe early February,” Don Ed said. Utah is finished with whites, and he said reds and yellows are still shipping. The Tampico-area Mexican deal will queue in after Corinne, and he said that sweet program is “on schedule for the last week of January.” Big volume out of Mexico will kick in mid- to late February, he added. Looking back at 2018, Don Ed said, “From a grower’s point of view it was disappointing. From a shipper’s point of view, people did a lot of volume but didn’t make a lot of money. It comes from oversupplies. We had good demand.” The answer, he said, is that “we all have to cut back a little.”
Northern Colorado:
Ray Kniss with Sakata Farms in Brighton said Sakata Farms is providing onions primarily to food banks and some institutions now. The farm was hard-hit first by wind and then by hail in 2018, with volume reduced as a result. Ray said, “It was an odd year, and we’re doing what we need to do.”
Broker’ Perspective:
Jason Vee with Vee’s Marketing in Superior, WI, told reported in on Jan. 2, saying, “I am getting the incremental price increases I was expecting after the holidays. It isn’t much, but it’s probably the first market increase we have seen in onions since late-summer. This week is still a bugger to get through because of the limited pack days. I’m looking forward to a normal, full work week starting Monday.”
He continued, “Quality is good overall, but I did have a couple of arrival complaints today. I think the entire operation gets stressed over this time period, and a few things got by QC that would normally get caught at the shed.” Also, he said, “Truck availability lightened up for me today. I hope that’s a trend and not just a blip. It’s too early to tell. Going over my notes from last January, and the entire month was difficult. And we ended up with an 8 percent rate increase as a market correction.” He went on to say, “As a rule, we only grab trucks off the load boards as a last resort. We have been in business since 1990, so I have a very organic base of high-quality truck vendors. Well, there weren’t enough trucks in Washington for us last week, so Angie and I ended up booking a few off the board, which, in turn, resulted in overpaying for trucks that would stop driving because of snow, wind, or the absence of daylight. I’m relieved that this week looks much better.”
Wisconsin:
Doug Bulgrin with Gumz Farms in Endeavor told us in late December, “The market is steady for us this week, with an anticipated increase in movement after New Year. We’ve had a lot of interest as of late.”
CROP
California:
Derek Ennis with L&M Cos. in Raleigh, NC, reported on Jan. 2 that the company’s operation in Calipatria is in good shape. “We were out visiting last week, and the crop looks great,” Derek said. “Looks like there will be good yields. While we still have about four and a half months of growing time, things are coming right along.”
New Mexico:
Derek Ennis with L & M Cos. in Raleigh, NC, reported that L&M’s New Mexico growers have their over-winter onions planted. “We’ve had a little weather, even some snow today. And while it looks like some winter weather in the forecast, we don’t expect that will have any effect on the crop.”
Texas Rio Grande Valley:
Don Ed Holmes with The Onion House in Weslaco said on Dec. 31 that the Rio Grande Valley had been experiencing normal cool weather for this time of year and noted the onions are on track for a normal spring start. “It’s been in the upper 40s, but today it’s in the high 60s,” he said. This is normal until mid-January, when it will warm up.”
