Today's Pricing

WATERMELON — F.O.B.S AS OF MAY 13

MEXICO CROSSINGS THROUGH NOGALES, ARIZ. — Crossings (705-766-766, seedless 683-751-759, seeded 22-15-7) — Movement expected about the same. Trading seeded slow, others moderate. Prices seedless 35-60 counts lower, others generally unchanged. Red-flesh seedless-type per pound 24-inch bins approximately 35-60 counts mostly 20 cents, 75-80s 14-16 cents; red-flesh seeded-type approximately 35-55 counts 12-14 cents. Flat cartons red-flesh seedless miniature 6-9s $7-9. Quality variable. Many present shipments from prior bookings and/or previous commitments.

LOWER RIO GRANDE VALLEY, TEXAS — Shipments (29-96-255, seedless 26-83-223, seeded 3-13-32) — Movement expected to decrease slightly. Trading very active at slightly lower prices. Prices 24-inch bins per-pound red-flesh seedless-type approximately 35-60 counts 28 cents, seeded-type approximately 28-35 counts mostly 21-22 cents. Quality generally good. Most present shipments from prior bookings and/or previous commitments at lower prices.

FLORIDA — Shipments (124-159-233, red-flesh seeded 16-29-53, red-flesh seedless 51-130-180) — Movement expected to increase as more growers start the season in central Florida. Harvesting slowed. Trading very active. Prices generally unchanged. 24-inch bins per-pound red-flesh seeded-type 35s 24-25 cents; red-flesh seedless-type 45 count 29-30 cents, 60 count 29-30 cents. Quality generally good.

IMPERIAL AND COACHELLA VALLEYS, CALIF., AND CENTRAL AND WESTERN ARIZONA — Shipments (AZ seedless 0-23-16, CA 0-26-78, seedless 0-24-73, seeded 0-2-5) — Movement from western Arizona, Imperial and Coachella valleys expected to increase seasonally. Trading fairly active at slightly lower prices. Prices slightly lower. Red-flesh seedless-type per pound 24-inch bins approximately 35 and 45 counts mostly 22 cents. Organic red-flesh seedless 24-inch bins per pound approximately 35 and 45 counts 35 cents; miniature carton 6s and 8s $20.50. Quality generally good. Harvest central Arizona expected to begin the week of May 27.



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Issue Announcement

Vidalia onion losses could be as much as 30%

Courtesy Sweet Onion Trading Co. (UPDATED COVERAGE, April 26) Shippers of Vidalia and Texas sweet onions said sizes will continue to be on the small side this season, and Vidalia losses due to downy mildew could be as high as 20% to 30%.

For Weslaco, Texas-based The Onion House, the South Texas sweet onion deal is expected to wind down between May 5 and May 10, two to three weeks earlier than normal, said Don Ed Holmes, the company’s president.

South Texas onions will be on the small side for the balance of the deal, Holmes said April 23.

Mike Martin, president of Mission, Texas-based Rio Queen Inc., had a different take on the Texas onion deal.

Rio Queen expects to ship until May 20-25, a typical end. And though size profile is slightly smaller this season, the company will have plenty of jumbos and colossals for late-season shipments, Martin said.

Vidalia onions also will be on the small side this season, said Derek Rodgers, sales manager of Melbourne, Fla.-based Sweet Onion Trading Co.

“Colossals will be tough to come by, and jumbos will also be down,” he said. “We’ll have a real good supply of mediums. It will be a good chance to promote 3- and 5-pound bags.”

Also like Texas, Vidalias will stop shipping sooner than normal, Rodgers said.

Sweet Onion Trading typically wraps up its Vidalias at the end of May, Rodgers said. This year, it will be the second or third week of May.

Losses for Lyons, Ga.-based L.G. Herndon Jr. Farms Inc. will likely be 15% to 20%, but industry-wide losses could be closer to 30%, said John Williams, the company’s sales and marketing manager.

Herndon said the company’s harvest will end about mid-May, with product likely shipping into early August, Williams said.

Size issues aside, the quality of the 2012 crop is outstanding, Williams said.

“The weather’s been beautiful the past few weeks,” he said. “We’re really pleased with how we came out on the other side of (the downy mildew outbreak).”

Rodgers has heard loss estimates higher than the 20% first forecast when downy mildew began showing up, but he thinks that early estimate will likely wind up being fairly accurate.

In addition to a big hailstorm in Texas in late March, more hail and rains the weekend of April 21-22 affected some onion fields, though damage was isolated, Holmes said.

But even bad weather hasn’t been able to jump-start markets this spring, Holmes said.

“It didn’t affect the price like we thought it would,” he said. “April has been one of the worst months for demand I can remember.”

Low demand in April was exacerbated by a glut of product, Holmes said, with Idaho, Oregon and Mexico running later than usual and Texas and Georgia starting earlier.

Advance pricing prevented the low supplies of jumbo and colossal Vidalias from exerting too much upward pressure on pricing through the week of April 16, Rodgers said.

“Ideally we’d like to get them up for growers,” he said. “They are starting to get some strength this week. We hope that keeps up the next two or three weeks.”

Jumbo markets will likely stay steady, medium prices could fall slightly and colossal markets could strengthen, based on whether retailers will be content to switch from colossals from jumbos when colossals get scarce, Williams said.

On April 24, the U.S. Department of Agriculture reported prices of $14-16 for 40-pound cartons of jumbo Vidalias, up from $12 last year at the same time.

Markets won’t likely get a boost until the Winter Garden area of Texas, California and Arizona begin shipping in early May, Holmes said.

“They’re going to inherit a really good market.”

Sweet Onion Trading expects to begin its Bakersfield, Calif.-area sweet onion deal in the second or third week of June. Typically, the company will store its California onions for three weeks to wait for the Vidalia pipeline to clear.

That likely won’t be the case this year, given Vidalia’s early end, Rodgers said.

“It’s a perfect example of why we have that deal. This could be the year where we don’t have to store.”


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