A Mess Out West

Between the transition from the desert to the northern growing districts, Easter pull, and cold weather, this past week and into this week is a virtual MESS. Just about ALL vegetables are tight in supply. Lettuce, green leaf, red leaf, romaine, broccoli, cauliflower, and strawberries are “demand exceeds supply” situation, and prices are going through the roof. As a side note, we see supplies being light with most of the vegetable items THROUGH the month of April. Although the East coast is done with their Easter pulls, there is still strong business going out this week for the Midwest and West coast receivers. Along with this, trucks are VERY tight and rates $500-1000 higher than where they have been. The reason for this isn’t just demand, but also the fact that there is little freight for West coast receivers. This is a sign of our economy.
Long range weather shows rain forecasted in Central and Northern California starting Tuesday and into Thursday.

LETTUCE–STRONG demand and VERY active market due to light supplies of 24 size lettuce in Huron and Salinas. We are hearing quotes of $20 FOB for lettuce today. Shippers are reporting more 30 size than 24 size. So, if you can use a smaller head, there are some deals out there. Some shippers, to avoid packing 30s are leaving a few more wrapper leaves on the head and making a 24. This makes for an UGLY 24.

BROCCOLI–continued light supplies and strong market, especially on crowns, of which there is little to NO crown material out there. We see light supplies of crowns for another 2 weeks.

CAULIFLOWER–this market has peak out. Although we saw some $20+ fob prices this past week, we expect retails to be pushed high, and business should slow. Keep in mind that supplies are light, so we may not see prices come down too far.

LEAF ITEMS–there are CRAZY prices out there on green and red leaf. Some shippers think they could get $20 fob this week. Romaine is strong, but not AS strong. This is another situation where we could see light supplies all month, and strong markets.

CELERY–a very WIDE range in prices here. The “preferred” labels, Dole and T&A are topping the markets with as much as $4-5.00/box HIGHER than some other shippers. They really don’t care. They are light, have a “captive” audience, and aren’t concerned too much what other shippers are doing.

ASPARAGUS–Easter business is done for East coast receivers, but Midwest and West coast customers are pulling through Thursday. That is keeping the market active. Still, when that business is done, we don’t see prices hanging on very long.

STRAWBERRIES–like asparagus, the honeymoon will be over for Easter action by Thursday, and then demand will fall off. We DO have rain forecasted for tomorrow through Thursday, which could upset things, depending how much rain we get.  Normally in April, our rain storms are less potent than early Winter months, so we don’t expect too much trouble. Still, Driscoll is pro rating 50% and HIGHER today, and probably for most of this week. Other shippers sit back and reap the last minute phone calls for fruit.

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