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Weekly Market Update for 11/27/17

Weekly Market Update for 11/27/17

 

Potatoes

Idaho

Potato demand is light to moderate after the holiday, but pricing remains steady. Quality is good. Transportation is still an issue with both truck and rail car shortages.

Washington

Acreages and yield in Washington are down so we will see fewer potatoes than last year. Processors appear to be fairly active in Washington and Northern Oregon. Considering supplies in other areas, we don’t expect to see much change in the market but we do think it will happen at some point. The latest report shows great variation in the size of potatoes, but it’s safe to say we won’t see as many cartons 70 ct. or larger in Washington this year.

Colorado

Colorado potato demand has slowed after the Thanksgiving holiday. Availability is good in most packs, quality is good, and prices remain steady. Truck shortages continue to plague shipments.

Wisconsin

Potato demand is light with prices remaining steady. Quality is reported as good. Truck availability, like everywhere, continues to be an issue.

Transportation

Freight rates in Idaho, Oregon, and Washington continue to be high and will remain so throughout the holiday season. Demand for trucks is high with heavy shipping from these locations. Transportation issues are hurting movement with truck and rail car shortages which may continue to be a problem.

Christmas tree shipping is underway and has tightened things up even more. The holidays are upon us and will tighten things up even more. The holidays are just around the corner which will create additional pressure.

Along with increased shipping, the ELD Mandate goes into effect mid-December and rail shipping is experiencing heavy delays.

 

Onions

Idaho/Oregon

The overall size of this year’s onion crop is not as large as last season. Yields vary but generally are 25-35% less than normal. One of our shippers stated he is 400,000 sacks short and will be canceling some contracts. We expect this market will remain firm and move up over time. Growers are bullish with lower yields and fewer onions. After the first of the year, shippers will look at their overall inventory and determine if they have to slow down even more. Several shippers will not be able to cover their contracts so they are limiting the amount of extra business they solicit. The good news is quality is excellent with bright colors and tight skins.

Washington

Washington onions are nice. Yields are average with size a bit smaller than normal. We expect prices on large onions to remain high with little or no price variance. Most shippers we talked to see the market as steady. RailEx rates are moving up to follow the trucks but it appears Washington will have at least some transportation options that other areas may not enjoy. However, that is only towards the Northwest.

Utah

The crop has nice size and is producing more jumbo onions but with yields down a little. Look for the market to follow the other western states. Quality is excellent and overall Utah has a very good harvest. Trucks that finish in Salt Lake City give Utah an advantage for transportation some other areas aren’t enjoying at the moment.

Colorado

Onion size seems to vary greatly in Colorado. Yield also seems to vary. Quality looks good as they move forward with the harvest. Market price is stable.

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