The summer onion market is well-supplied, with ample product coming out of California and New Mexico and strong quality reported across all major growing districts. Demand and supply appear balanced for now, which is keeping prices stable.
The problem isn't the onions — it's the cost to move them. Fuel rates are running near record levels, which is compressing margins for growers and shippers even when market conditions look healthy on the surface. High fuel costs are a quiet but meaningful drag on profitability across the produce supply chain right now.
For buyers, stable onion pricing doesn't tell the whole story. Suppliers managing elevated transportation costs may look for other ways to recover margin — worth keeping in mind during negotiations and contract renewals.