Strong onion markets expected to continue
Strong onion markets this fall seem to be setting the tone for a firm storage onion market outlook throughout the winter.
The fob market for Idaho-eastern Oregon onions was trading at $15 to $16 per 50-pound sacks of yellow onions on Nov. 4, similar to $14 to $16 per sack at the time last year. However, the early November market was more than double the $6 to $6.50 fob reported two years ago.
Prices may increase as the storage season progresses. For the 2021-22 season, the USDA reported the average U.S. onion fob peaked at $21.66 per carton in February.
Foodservice supplier Markon reported steady market conditions for onions in its Nov. 6 market outlook report.
“Medium and jumbo sizes are ample; colossal and super colossal onions are adequate,” the report said. "Quality is excellent: stocks possess solid, globe-like shape and firm texture.”
Supplies running behind
Total U.S. onion shipments for the week of Oct. 23-29 totaled 2.52 million 40-pound carton equivalents, down 9% from 2.75 million cartons the same time last year.
Domestic truck shipments for the week of Oct. 23-29 accounted for about 1.79 million cartons, domestic rail shipments accounted for 97,000 cartons and domestic piggyback shipments accounted for 6,000 cartons.
Top domestic suppliers of onions in late October were Washington, Idaho, Oregon, New York, California, Utah, Michigan, Colorado and California.
Washington accounted for 837,000 cartons of onions the week of Oct. 23-29, or about 33% of total shipments in late October. Idaho accounted for 461,000 cartons or about 16% of total supply. Oregon accounted for 124,000 cartons or about 6% of total shipments.
New York accounted for 171,000 cartons or about 7% of total onion shipments in late October. Colorado accounted for about 97,000 cartons or about 4% of total shipments.
Joshua Frederick, general manager of Snake River Produce, Nyssa, Ore., said many Northwest U.S. onion growers saw shorter-than-expected crop volume.
“We are short supplies even worse than last season,” Frederick said. Growers have been hit by higher costs, with input costs up double or triple several years ago, he said.
Import role
Onion imports accounted for 624,000 cartons during the week of Oct. 23-29, down from 676,000 cartons the same week last year. Imports accounted for about 25% of the total U.S. onion supply in late October.
Peru alone accounted for 518,000 cartons or about 21% of total U.S. onion shipments in late October. Other countries sending onions to the U.S in late October include Canada, Mexico and Spain.
Elevated markets
Despite the elevated markets, Frederick said retailers can effectively promote onions by setting up end-cap displays.
Foodservice demand is growing, Frederick said.
“Starting this past six months [foodservice] demand is come back around but still not like it was before the pandemic,” he said. Fast food demand is up, adding to the raw/fresh side of demand, he said.
