MARKET REPORT

Market Update – Sept 2017

Shipping volumes since late last week have been steady, brisk, and to the point where we have been sold out days in advance. Shippers in the Treasure Valley are having a difficult time keeping up with demands, due to the few numbers of us who are actively participating in the marketplace. As of this week, there are approximately 8 shippers in the Treasure Valley that have begun shipping as of Monday, August 28th. This is one quarter of the number of sheds that were packing this time last year and at least one half of normal. This is again due to what I’ve spoken about in previous reports: hesitation to enter the marketplace based on weak stands or potentially poor yields.

There is also another new factor coming into fruition – and that is the new infrastructure forming in the packing facilities that are updating this year. Technological glitches or delays have prevented some from entering the marketplace on the same level as they normally would have entered by this point and time.

Jumbo yellows as of today were a strong $8.5- 9 . Colossals, if you can find them, are $10-11, and Super Colossals are at $11-12. I don’t see any indication of the larger sizes being discounted much due to the overall smaller size profiles of the varieties being harvested at this time. I also think this is an early indication for the potential under-supply of Colossals and Super Colossals available out of the Northwest in the 2017 packing season.

Market Outlook

As we continue to get into harvest there are a few noticeable issues that are taking place. First is the fact that in the Northwest, reds and whites are not yielding what was expected. This appears to be due to the smaller size profiles in these onions. Stand counts were below normal by 3-6%, but the overall size profile appears to be down 20-30%. This shift in the size profile of the onion appears to be having a 10,15, sometime 20% impact on yields. This is the most notable in red and white onions, as we try to grow mostly jumbo sized onions in the profile and are instead bringing in more mediums. In yellows, there are indications of lower yields as well, but not at the extreme level we’ve seen in reds and whites.

As we have suspected, some fields will come in at less than 50% of average, however there will be other fields that come in at average levels and above. The simple fact is that there are higher numbers of lower yielding fields than in normal years, so the impact will be somewhat higher than normal.

I would expect to see steady pricing on yellow sizes Jumbo and up with the potential increase in prices on Colossals and Super Colossals. Reds should continue to be strong during the harvest season, especially Jumbos. Whites appear to be strong in both sizes and are still in very few hands.