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Onion: Market Update 3/13/19

Onion: Market Update 3/13/19

Onions - Special Market Update 3/13/19

  • Onions will be in a Bull Market for remainder of 2019 crop and into the summer deal
  • A perfect storm of short storage supplies, fewer acres planted, and adverse weather conditions are coming together to create this scenario
  • The short version:  the onion market will most likely remain volatile and continue to gain strength while onions will be in tight supply for the remainder of the storage season. Expect price hikes throughout the coming spring and into the Brawley deal and plan to plan ahead.  
  • Relief will most likely not be seen until the volume of new crop is realized from the Bakersfield growing areas in early June. Then the NW in mid-July will kick in with better supplies if planting goes well this spring.
  • Mexico has not been crossing normal volumes due to early season rain causing quality issues along with reduced yields.  In fact, they are absorbing most of what they are growing while continuing to purchase from the NW growing districts further depleting storage supplies.
  • Texas planted far less acres this season.
  • Brawley district overplanted last season which resulted in huge losses due to oversupply and low returns in 2018. Consequently, Brawley growers planted much less this season as well.
  • The North West remains blanketed in snow and freezing temperatures which is delaying the spring planting considerably.  Look for  the NorthWest new crop production to be delayed a minimum of 2 to 3 weeks into the 2019/2020 crop.