WARMER WEATHER

8/23/10

WARMER WEATHER

After one of the coolest summer months in history, the end of August is showing a warming trend in Monterey County.  The next few days are expected to reach into the 90s and some 100s inland.  This is a dramatic temperature change; for too long now, cool, misty days in and around the Salinas Valley have stunted plant development, resulting in strengthening markets and having adverse quality defects not normal for this time of year. Although the warmer temperatures are needed to develop product, there is a possibility of heat damage if the warm weather continues.

Long range weather shows hot temperatures into Wednesday and cooling off towards the end of the week.  Trucks remain steadily tight and rates continue to hold on to the high 6000s and low 7000.

LETTUCE — Market is proving to be quite active as we start off the week, it slowly creeped up last week partly because of the cold weather.  More 30 sizes are available as a result of the slow growth.  Expect light weights to continue into the weekend, but our recent warming trend should size up heads and bring on more product.  The market will most likely slip downward towards the end of the week but shippers will do all they can to keep prices as high as they can until they are loaded with product.

BROCCOLI — market remains flat and plenty of product out there. There have been quality issues affecting broccoli though we don’t know it but because of the fact that there is so much product coming out of the fields, packers are able to pick through product and avoid most of the problems. Expect the broccoli market to remain flat at least into next week, weather permitting.

CAULIFLOWER — plenty of product, come and get it. Warmer weather will bring on more product so expect the market to come off slightly towards the end of the week. Quality issues include brown spots and some mold and decay caused by mildew.  Product is mostly clean.

LEAF — Excellent quality all around, pricing has remained steady after an up trend last week.  Like the other items, our warmer weather will bring on more product.  Romaine has been the most active but we don’t expect prices to rise much more, in fact, we could see a closing in on the price gap between red green and romaine of the next few days , as there has been talk about light green leaf harvests. Shippers will try and hold prices high as long as they can so be sure to shop around.

CELERY — Volume is still consistently good and product is shaping up nicely.  Shippers have been trying to bend the market up toward the 10 – 12 dollar range, but the demand has just not been there to sustain any spike in price as people look to stone fruit and melons as an alternative. The recent heat may bring about seed stem issues over the next few weeks, but other than that, expect good quality and a variety of sizing into next week.

STRAWBERRIES– We are now nearing the top of the volume scale for this time period, and although slightly wet, the weather has been accommodating to the berries and coolers are packed full of them.  The market is quite varied depending, a 5 dollar spread in some cases, and quality is fine.  This heat will hopefully be short lived, and plants are large enough now that they are able to shade the berries from direct sunlight.  Warmer weather could still soften up the fruit and cause bruising, but plants seem to be healthy for now.

Ed Brem

www.producewest.com

COLD AUGUST

After the first week in August, the Central Coast of California, as well as northern California, is looking at record breaking cold temperatures. What it amounts to is the normal overcast we get in the morning that usually burns off by noon, or so, continues to hang around, keeping the temperatures well below normal for this time of year. The area of California we are talking about is the Salinas/Watsonville regions where the strawberries, lettuce, leaf, broccoli, cauliflower, and other items are coming from. Berries, in particular, are suffering and we are seeing shortages and pro rates.

Long range weather in Salinas/Watsonville areas show continued below normal temperatures for the all of this week, then warming up for the weekend. The Fresno/Bakersfield areas show steady, hot temperatures, which are normal for the summer.

Trucks continue to be readily available for all areas of the country, and rates are “negotiable”.

LETTUCE–stronger market. After last week’s giveaway, cooler weather has slowed growth and production, and the shippers have bumped up their prices $4-5.00/box over last week. Quality is continuing to look good, overall, with nice color and condition. We’d like to see better weights, but they are down, due to the cooler temps.

BROCCOLI–still good deals out West, in spite of increased demand from receivers that had been taking Eastern broccoli. Bunch 14s, 18s, and crowns are all showing good condition, with nice, tight beads, and color. We could possibly see this market pick up by the end of this week.

CAULIFLOWER–good deals here, too. Plenty of 9s and 12s, prices are low, and quality is nice, overall. However, we could see this market improve by the end of this week, as well. The cold temperatures will slow down growth and production.

LEAF ITEMS–stronger on red, green, and boston, and REALLY strong on romaine. There has been quite a bit of supplies lost the past few weeks due to fringe burn on the romaine. Shippers have had to pass over fields or suffer yield loss because of this. As a result, the market is nearly double from the past few weeks.

CELERY–plenty of product, and prices are on the floor, for most shippers. Dole continues to demand $2-3.00/box more than the mostly market. With Michigan going, we don’t see this market doing much. Freight rates, although continuing to slide from their yearly highs, still make a box of celery to the East coast close to $20.00.

STRAWBERRIES–the record setting cold temperatures in Central California for August have REALLY slowed down growth and production. All of a sudden, Driscoll is pro rating 50%, and more, while other shippers take advantage of this “new found” business that Driscoll can’t cover, and are bumping up their prices. As mentioned, we are going through record setting cold temperatures for August, and it looks like it will be the same all week. So, expect higher prices and more pro rates. Condition will suffer, as well. Look for more white shoulders and green tips.

Ed Brem

ed@producewest.com

HEAT IN THE EAST TAKING ITS TOLL

Even though the weather in the East is “cooling” off, the heat from the past few weeks is taking its toll on produce. Short term, lots of damage on just about all items. Long term, it will shorten the Eastern harvesting season on leaf, melon, broccoli, peppers, you name it. We could see some active markets on certain items out West as Fall approaches.

Long range weather in the California growing regions show below normal temperatures in Salinas/Watsonville the next week, while continued hot in the Fresno/Bakersfield areas, which is normal for this time of year.

Trucks are available, and their honeymoon is over. Rates are more flexible for just about all areas of the country.

LETTUCE–lots of lettuce available and prices down. Good supplies and quality in Salinas and/or Santa Maria areas. The market is $8-10 fob, and we don’t anticipate much change this entire week.

BROCCOLI–the East is showing damage for the past few week’s heat spell, and buyers are already starting to switch to Western broccoli. The shippers out here recognize that, and are already looking to raise their prices, which have been on the floor. We could see the market up $3-5.00 from today as this week moves along. Quality holding up nicely.

CAULIFLOWER–more interest, too, in Western cauliflower. The market is more wide ranged than broccoli, with prices from $7-12.00 fob, depending upon the shipper and area. Quality very nice out West.

LEAF ITEMS–definitely a stronger market on romaine, while red and green leaf are trying to get off the floor. Again, more interest in Western leaf, due to problems with local Eastern product. Romaine is already $3-5.00/box higher than last weekend even, and we could see the shippers push for more as this week goes.

CELERY–not much interest in celery, and prices are fairly weak. Dole and T&A seem to be holding a bit firmer, but even THEY are looking for business. Celery is ranged from $8-10.00 fob on all sizes, with some wiggle room. Hearts still active.

STRAWBERRIES–cooler, damp weather in Salinas and Watsonville is NOT helping supplies and quality. Market stronger and Driscoll is back to pro rating orders.  August usually is when we have to deal with quality issues because of the weather, and we also see shippers not interested in going “too far East” with their supplies. Some shippers will be selling with the tag, “we don’t want to hear about any problems” as we get into August and September. It will be important to know this, and move your straws, raz, and blackberries as QUICKLY as you can.

Ed Brem

ed@producewest.com

DOG DAYS

It’s inevitable that the “Dog Days” hit us during the summer, and we are there. Local vegetables and fruits are coming on like gangbusters in the Midwest, South, Southeast, and the East, and this means that business for many items slow to a crawl. Long range weather for the next 10 days show hot and humid conditions will continue in the Midwest and East. Local growing regions in Fresno, where the tree fruits, grapes, and melons are coming from, show typical hot weather in the low 100’s, while the berry and lettuce regions in Salinas and Watsonville are cool and mild, also typical for this time of year. Trucks, while available for the most part, are still holding strong with their yearly high rates. In talking to various truckers, there just isn’t much westbound freight, which means there aren’t a lot of trucks available to load produce to go east. Along with that, heavy demand for the summer fruits are also keeping rates firm.

LETTUCE–still a firm market, with wrap holding at $15-17.00 fob, which adds up to the mid $20’s delivered. We should see demand stall and the market come down, possibly this weekend. Retails are set too high, and fruit salads are more popular than lettuce salads right now, so we feel demand should slow down. Quality is holding up nicely.

BROCCOLI–there is PLENTY of broccoli, either bunch or crowns, and prices are down. Eastern supplies are popping, so demand for Western broccoli has slowed considerably. Supplies are coming out of Salinas and Santa Maria.

CAULIFLOWER–still a fairly wide range in price, although the trend is for downward. Again, demand has slowed due to local supplies and just a general disinterest in cauliflower this time of year. Fob ranging from $6.50-10.00.

LEAF ITEMS–even though demand is light, supplies are down, so many shippers are raising their prices of red, green, and romaine. This rise shouldn’t last too long, again attributed to local supplies throughout the country. All leaf ranging from $8-10.00 fob, which add up to the mid to high teens on the East coast.

CELERY–Dole still leading the way, commanding $4-5.00/box MORE than the general market. Demand only so so for all sizes of celery, but freight costs of $10/box or more, add up to $20+ delivered costs to the East.

STRAWBERRIES–still strong prices for 8/1# clams, especially with Driscoll. They were down 25% last week, and will be another 30% less this week. They are pro rating orders and have raised their prices $2.00/box in the past 2 weeks. You try to tell them that there is no demand, but they don’t CARE. They do what they want. Quality is still hanging in there. Ed Brem

ed@producewest.com

SUMMER FRUITS HEAT UP

SUMMER FRUITS HEAT UP

As we head into the dead of summer, we are seeing more volume on tree fruits, as well as the start of the summer melon deal, with cantaloupes, honeydews, and assorted mix melons coming in. Grapes have also started. Also, Bartlett pears are just around the corner, looking to start next week.

Long range weather shows continued hot, muggy weather in the Midwest and East, 100 degree plus temperatures in the growing areas of Fresno and Bakersfield, and mild days in Salinas and Watsonville.

Trucks are still firm in price, due to the lack of back haul loads from East to West. That keeps truck supplies fairly tight, and rates firm at their yearly highs.

LETTUCE–very light supplies and the market continues to get stronger. Shippers aren’t bashful about pushing prices for wrap 24s to $18+, and higher, fob, which makes it $25 and up delivered to the Eastern destinations. Quality is mostly good, with good medium plus head size, and good weights.

BROCCOLI–steady market on bunch 14s and 18s, and strong market on crowns. However, there is a wide range throughout on all broccoli, depending upon the shipper and area. Santa Maria has a bit more flex in their markets than Salinas. Bunch 14s and 18s range $6.50-8.00, while crowns are ranging from $8.50 to $10.50.

CAULIFLOWER–a fairly wide range in price on 9s, 12s, and 16s. Supplies are fairly light, but weak demand is preventing shippers from pushing things too high. We are seeing a range of $9.00 to as high as $13.00 fob for 12 size, depending upon the area and shipper. Supplies coming out of Salinas or Santa Maria.

LEAF ITEMS–still pretty dead on red, green, and romaine. Typical for this time of year, as local gardens are starting to pop with their crops. Prices are at, or close to the bottom, on red and green–$6-7.00 fob, while romaine is $8-10.00. Freight rates make delivered prices to the East coast high, as you need to add $9-10.00/box for romaine, and $7-8.00/box for red and green.

CELERY–fairly steady prices on all sizes. 18s, 24s, 30s, 36s, and 48s are all in the $10-12.00 range fob, except for Dole, who is as much as $5.00/box HIGHER across the board. Doesn’t make sense, but, they are able to get it.

STRAWBERRIES–continued strong market, with Driscoll raising their prices, and pro rating available supplies. Most other shippers are firm in price because of Driscoll pro rates. They pick up additional business every time Driscoll cuts orders, so they lay in waiting. Prices are firm, and look to stay that way all this week, at least.

Ed Brem

ed@producewest.com

SUMMER IN FULL SWING

Now that the 4th of July is officially over, we start settling into full summer mode. With that, stores continue to pound away on tree fruits, melons, grapes, and other assorted fruits, along with various summer vegetables, such as lettuce, celery, carrots, and leaf items. As hot as it has been on the East coast, no one is even THINKING about cooking items.

Long range weather shows continued hot in the East, although scattered thunderstorms will be around. As far as the growing areas in California, continued mild temperatures in Salinas and Watsonville, and hot in the fruit regions of San Joaquin Valley and Bakersfield.

Trucks are still fairly tight, especially after the 4th of July, as trucks are a bit messed up due to their arrival schedules. Rates are still at their summer highs.

LETTUCE–supplies remain fairly light, and prices are high. Shippers aren’t afraid to push for more money, and edging towards $20 FOB, even with the high freight rates. Quality is mostly nice.

BROCCOLI–overall supplies fairly light, but so is demand. We see a steady market this week. Crown supplies continue sporadic, as some shippers are quoting as much as $3-4.00 more than others.

CAULIFLOWER–like broccoli, fairly light supplies, and prices are fairly wide ranged, with as much as a $5.00 spread, depending upon the shipper and area. Still $20 delivered prices to the East coast is fairly common. Not much change expected this week.

LEAF ITEMS–no change. Good deals on red, green, and romaine, and prices are at the bottom. Too much local product around.

CELERY–Oxnard is totally finished, and Salinas is the area to get celery needs. Most shippers have plenty of product, however Dole is pro rating, and priced $3-5.00/box more than the general market.

STRAWBERRIES–a roller coaster ride. Supplies are down right now, and priced firm. Driscoll is pro rating, as well. We see a strong undertone all this week, and next.

Ed Brem

ed@producewest.com

SUMMER IS UPON US

Although summer doesn’t officially start until next week, schools are out and vacations are starting. Because of our continuing slow economy, “staycations” will, once again, be the norm.  But, that also means shifting of produce needs from the typical cooking vegetables and lettuce salads, to fruit salads and picnic items. More ads and better demand on tree fruits, melons, and grapes, and less demand for lettuce, broccoli, cauliflower, celery, leaf, etc.

Long range weather forecasts show mild, sunny days in the Salinas area and 90s in the Fresno fruit regions, all typical for this time of year.

Trucks, which were EXTREMELY tight and high priced last week, are a bit easier to find today, and rates are a bit lower. Keep in mind that last week rates were hovering around $8000-8500 to the East coast, so even paying $7500 today, is still high. Fourth of July business kicks in next week, so demand should pick right back up.

LETTUCE–while demand is only fair, the market is still hanging around $15-16.00 FOB, which puts it $22-25.00 to the East coast, high for any decent retail. We feel this market is top heavy, and should start to come down this week. Quality is improving every day, with better size and weights.

BROCCOLI–flat market. As mentioned, folks get away from the “cooking” vegetables this time of year, and look for items like tree fruit, melons, and grapes to satisfy. Shippers out west basically plan on this, and don’t plant heavy during the summer months, hoping to keep the market from going too low. Still, there is quite a bit of broccoli around, and the market is flat at $6.00, or so, FOB, which puts it $11.50-12.50 delivered to the East.

CAULIFLOWER–like broccoli, demand is light and prices are fairly flat, although much more wide ranged than broccoli. FOB prices are ranging from $6.00 to $9.50, depending upon the label and shipper.

LEAF ITEMS–romaine still remains flat, as does red leaf. Green leaf, for some reason, is getting $4-5.00/box more than its counterpart, red leaf. More and more local deals are starting up throughout the Midwest and East, so we should see all of the leaf markets flat by this time next week.

CELERY–high freight rates are catching up with the FOB prices. In order to move celery, shippers are forced to drop their prices, to allow for a decent delivered price. The best deals are still on the larger size 18s and 24s, with as much as a $5.00/box SPREAD between those sizes and the 36s and 48s. However, delivered prices of celery are still in the mid-$20s, which makes retail pricing difficult.

STRAWBERRIES–even Driscoll looking for business. This deal has come to a complete stop, as the terminal markets are receiving load after load of “unpriced” fruit. And, we don’t expect things to improve for the next several weeks, at least. There is not only berries coming on in big numbers, but demand is falling off, as attention switches to tree fruit, melons, and grapes.

Ed Brem

ed@producewest.com

Trucks are tight!!

For several reasons, trucks have been tight the past few weeks, and look to be even TIGHTER in the coming weeks. A combination of tighter emission standards making it more expensive to run trucks, and the fact that the economy is still slow. We are also seeing increased demand for rigs to haul the tree fruit, grapes, and melons, which we see this time of year. Business from East to West is slow, and there just aren’t many trucks hauling various items, such as furniture, paper goods, dairy products, machine parts, you name it, and the business just isn’t there. Truckers are “dead heading” their rigs from as far East as the Midwest to California to pick up freight. This means that the truck is coming EMPTY to pick up high-priced produce loads. Also, truckers are coming empty from Oregon and Washington to California, due to the lack of freight in those areas, as well. Because of this, Florida, for instance is charging as much as $4500 to the Eastern seaboard for produce loads. It’s no wonder why quotes as high as $8000-8500 for loads to the East coast from California are becoming commonplace. Add that to FOB prices, and you’ve got expensive delivered prices, regardless of the FOB.

Long range weather show more warmer, seasonal temperatures for Western fruits and vegetables, FINALLY.  This will help bring on more product.  As mentioned, continuing higher freights as we get into the summer mode. We should see rates peak out by 4th of July.

LETTUCE–still tight supplies and prices strong at $14-16.00 FOB, loading in the Salinas and Santa Maria areas. Now that our weather is warming up, we should see better supplies coming on, and the market drop, possibly as early as this weekend.

BROCCOLI–fields still trying to get caught up, after the past several weeks of below normal temperatures. As mentioned with lettuce, we should see supplies start to increase, and prices come down. Right now, bunch 14s and 18s are strong at $11-13.00 FOB, and crowns $2.00/box, or so, higher. The crown market may stay strong, as it takes a bit longer for those fields to get back to normal.

CAULIFLOWER–with the high retail prices throughout the country, demand has dropped off considerably, and it shows in the market. 12s are priced in the $8-10.00 range, with 9s and 16s a dollar lower. We don’t see much change in the market this week.

LEAF ITEMS–still quite a spread in price between green leaf and red leaf, with green demanding nearly double the $7-8.00 FOB that red is, currently. Romaine is still fairly flat, at $6.00-7.00 FOB, but with the high freight rates, it still gets up to $14-16.00 delivered to the East coast. We see the leaf market remaining steady this week.

CELERY–the high freight rates appear to be finally catching up with the high celery market. If you are paying, say, $8000 for a load of celery to the East, and you only get about 680 boxes on a load, that is a freight cost of close to $12.00/box!! That is why the FOB market is softening up, even though the shippers don’t want to admit it. We see it coming.

STRAWBERRIES–now that Memorial Day is over, and our weather out West is finally warming up, we will start to see better berry supplies and the market start to soften. Also, more stores are looking to advertise seasonal fruits, such as peaches, plums, nectarines, melons, and grapes, which means less space on the shelves for berries.  Today and tomorrow there will still be decent action, but we see demand slowing by this weekend. Even Driscoll will be looking for business by this time next week.

Ed Brem

ed@producewest.com

www.producewest.com

Coldest May Since 1880

The National Weather Service reports that northern California is experiencing the coldest average temperatures in May since 1880. While the growing areas for fruits and vegetables are more considered “central” California, we have had much the same. In fact, the whole state has had one of the coldest Mays on record. It has slowed the growth and production of just about all items, including strawberries, cherries, tree fruit, melons, and most of the vegetable items. While some items are waiting for the warmer temperatures to bring on product, other items will never get back what has been lost.

Trucks are extremely tight this week, as Memorial Day weekend approaches, and rates are easily into the $7000’s to the East coast. Not just because of the lack of trucks, but the lack of West bound freight is hurting the availability of rigs. Expect rates to continue their climb upward.

Long range weather continues this week with below normal temperatures and even threats of rain ALL this week. Not good.

 

LETTUCE–market starting to come down, as more stores are looking to push “fruit” salads, instead of “lettuce” salads. The cold temperatures have slowed growth and production, but demand has also slowed due to the aforementioned reason. But, due to the high freight costs, delivered prices of wrap 24s are easily over $20.00 on East coast markets.

 

BROCCOLI–still tight supplies of crowns and that market remains strong. We are looking at fob prices of $15-18.00, which puts delivered prices well over $20.00. Bunch 14s and 18s are more available and priced $2-3.00/box cheaper.

 

CAULIFLOWER–this is a true reflection of how the cold temperatures are affecting an item. The cauliflower market has been over $20 fob for the past 4 weeks, and looking to make it 5 weeks. As long as the temperatures stay in the 50’s and low 60’s, as it’s been, supplies just won’t come on. Expect this market to remain active all week, and priced high, although we could start to see a range in price as this week progresses.

 

LEAF ITEMS–again, the cold weather is holding back supplies, keeping the fob markets for romaine, boston, red, and green leaf in the $12-15.00 range, which means delivered prices on the high priced trucks $20 and higher on all leaf items.

 

CELERY–strong, active market on ALL sizes. With the high freight rates pushing the cost of a box of celery to $10.00/box to the East, it’s not hard to imagine the price of celery upwards of $25-30.00/box. We don’t see this market coming down any time soon.

 

STRAWBERRIES–now that Memorial Day business is basically done, except for West coast business, you’d think we’d see the market start to come down. In fact, it was over a month ago that shippers were talking about a FLOOD of supplies by mid-May. But, with the cold, sometimes wet weather, supplies are still way down. In fact, Driscoll is prorating 30-50%. One grower was telling me that their volume on Salinas/Watsonville fields will be down 1000 cartons per acre this spring because of the record breaking temperatures.

 

Ed Brem

ed@producewest.com

www.producewest.com

Cool Weather

Now that spring is in full bloom we have been waiting for the warmer weather that is normal this time of year, however, it still feels like winter for most of the west coast.  National news claims this has been the warmest year on record, but so far we are below average in the Salinas and San Joaquin valleys.  Salinas has been hit very hard with rain and overall quality has suffered.  With more rain and cold weather forecasted this week, we expect more of the same issues we faced last week.

Truck rates are through the roof, averaging in the mid to upper 6 thousands.   Diesel fuel prices have been well into the mid 3 dollar range, giving truckers more ammunition to spike up rates.  Truck emission regulations that went into effect a few months ago are still weighing heavy on truckers, new engine parts can be faulty, resulting in more breakdowns than we are used to.  Our hope is that the bugs will eventually be worked out and things will be back to normal.

 

LETTUCE — cooler weather has hit the Salinas lettuce crop pretty hard.  Supplies are down and shippers don’t have ample supply just yet.  Russet spotting has been a prevalent issue, but crews are catching the problems in the field before they lead to bigger problems.  We are still seeing some damage from the heavy rains we received a few weeks ago, but issues are becoming fewer and quality is improving.  As the weather warms in the coming weeks, supply will improve.

 

BROCCOLI — We have been seeing this item tighten up over the past week and a half.  Usually broccoli is the one of the first plants to be affected by the cooler temperatures, resulting in slower growth and purpling. Although numbers are down, quality is good, and we have seen very few quality problems these past few weeks.  We have plenty of product broccoli in the field, but little to none in the coolers and we are still a week or two behind normal development stages for this time of year. Get your broccoli orders in early if possible.

 

CAULIFLOWER — same situation here as with broccoli, cooler weather has slowed growth, resulting in fewer numbers industry wide.  Quality was been good, no sun damage for obvious reasons.  We are in the middle of a planting gap for both broccoli and cauliflower and it will continue into next week.  After next week we will see and improvement in supply.

 

LEAF ITEMS — Plenty of red leaf and romaine, green leaf is a little tighter.  Most quality problems that had derived from the heavy rains have been cleaned up and we are back to normal product.

 

CELERY — The good news is there is little or no seeder problems to speak of.  The bad news is product is getting much tighter.  It will be evident later this week and we could see the market jump by a few dollars. Sizes are more balanced than they had been in the past few weeks but supply is drying up due to the planting gaps caused by the heavy rains a few weeks ago.

 

STRAWBERRIES — Still very tight, and shorter supply is expected towards the end of this week.  With rain in the forecast early this week, we could see a significant impact on the berry crop.  Currently there are few quality issues and the berries are on the larger size, but if we get rain this week, the game could change completely. Get your orders in asap.

 

ASPARAGUS — Product is tight because of the cooler weather.  Quality has been ok, very few issues.  They are leaning more towards the smaller sizes than before.  It will be a while before we can dig our way out of the current planting gaps, and if weather doesn’t improve, we could see the market shoot up the the high dollar range.

 

Ed Brem

Produce West Inc.

www.producewest.com

ed@producewest.com