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Onion Market Update June 11, 2024
By John Harris
Another week and another update is coming your way. It’s an interesting situation because the onion demand for my office is extremely slow. My customer base is also backing up our thoughts that movement and demand seem quiet at the moment. The USDA daily shipment report shows quite the opposite. Last week, we saw over 1000 loads cross the border from Mexico to the U.S., which is a lot of onions. We had a similar situation last season. We went into June with a great market, and we saw it erode week after week with the high number of Mexican imports that crossed. It looks like Deja Vu all over again.
The red market remains extremely high but has declined gradually, particularly for the jumbo market. Medium reds remain tight, and that market is holding up better than the jumbo red market. The medium yellow market has remained in better shape than the jumbo and colossal market. Medium yellows are available but require planning ahead if you are looking for volume. Whites are a mixed bag.
New Mexico and Central California are doing their best to keep their market steady despite pressure from cheap Mexican supplies that continue to pop up in various locations. Central California has decent supplies now and should be in even better shape by this time next week. New Mexico is in full swing and has all sizes and colors going. Georgia is also still shipping out conventional yellows for another 3 weeks.
The 4th of July push is right around the corner, as surprising as it may sound, and it’s shaping up like medium sizes, and pack time is well-spoken for any holiday ads on consumer packs. Despite what the USDA reports, I stick by the fact that movement feels sluggish and expect the pace to pick up over the next 10 days. There will be many sourcing options in the coming weeks, and adequate supplies for the current demand will be available. Prices will find a happy spot, and this market should settle in for a few weeks and remain pretty steady. So far, the quality of Central California and New Mexico has been fantastic.
As always, I would appreciate any feedback you can give me. Enjoy these beautiful summer days, and I’ll check in again in a couple of weeks.
Editors Note: John Harris is the president and founder of Paradigm Fresh and Colorado Cold Connect in Fort Morgan, Colorado. He can be reached at John@paradigmfresh.com.
