Northwest Farm Credit Services has released its Onions Market Snapshot, which provides some insights about the coming 2015 onion crop from the Pacific Northwest.

The association said that Northwest onion producers may face a more positive new crop marketplace, with key drivers including the following:

• Flat to lower acreage. Northwest onion acres are estimated as similar to slightly below the prior year, capped by low returns in 2014. Excellent current crop conditions are likely to deteriorate with extreme heat.
• Regional crop shortfalls. Mexico and Texas onion crops are smaller than the prior year. Although the early California crop was strong, later season crops may be plagued by drought and water rationing.
• Early pricing window. Smaller crops in competing onion producing regions may provide Northwest onion growers opportunities for stronger early season pricing. According to the report, growers are reporting crop development that is 10 days to two weeks ahead of typical timetables.

“Effects of extreme heat in late June may reduce yields, size and quality,” the report stated. “Irrigation water supplies and concerns for adequate water vary throughout the Ontario, OR, and Nampa, ID, areas, but generally aren’t a significant concern in major growing areas in the Columbia Basin.”

Northwest onion storage facilities have limited to no old-crop onion inventories. “New Mexico and the San Joaquin Valley led the U.S. in onion shipping in late June,” the association report stated. “Although onion prices increased late in the marketing season, the uptick did little to offset generally dismal prices for the 2014 crop.”

The U.S. Department of Agriculture said there are adequate supplies of trucks to move onions from the Pacific Northwest.

Turning to pricing, Northwest Farm Credit Services said the 2014 marketing season from the Pacific Northwest is closed. “However, second quarter Northwest onion prices may be contrasted with current prices in New Mexico and the San Joaquin Valley as a potential prelude of early prices for the 2015 Northwest onion crop. Although early, current prices suggest a transition to higher prices in 2015. Risks to the outlook include uncertainty surrounding later-season California onion volumes. Northwest crop conditions are also uncertain, facing forecast temperatures near or exceeding 100 degrees for the first half of July,” the report said.

On July 13, the National Potato & Onion Report noted the following: The demand for Walla Walla Sweet onions was deemed good with the “market steady;” pricing for 40-pound cartons was $23 for colossals, $22 for jumbos and $20 for mediums.

For the week ending July 11, a total of 48 truckloads were moved from Washington's Columbia Basin, with another 14 loads moved by truck for export. A total of 32 truckloads of sweet onions were moved from the Walla Walla District as of that date.