DESERT FREEZE

the cold weather in the desert is taking it’s toll on product, both supply, and quality-wise.  Night time temperatures dropped into the 20s in the desert for nearly 5 nights straight, causing a heap of problems. While the workers are doing their best to trim off the freeze effected leaves, there WILL be some issues upon arrival. Blister, epidermal peel, and discoloration are all showing up, so you need to expect these problems, and let your customers know what is going on. This is universal, and no one is free of the problems.
Long range weather shows cloud cover (with a few showers) in the desert today, then clearing. There will be cold mornings in the desert growing areas the next 10 days, and highs only in the upper 60s to low 70s.
Truck rates are coming off slightly from last week.  Tree fruit, grapes and melons are finished for the season , leaving a good supply of trucks looking for loads.  Christmas is approaching and fuel prices remain high so we expect only slight drops in rates.

LETTUCE — Last week’s cold spell took its toll on lettuce.  Blister peel, feathering and discoloration are an industry-wide problem. Shippers are now quoting WITH freeze damage, so if these issues come up on the receiving end, those are NOT scoreable.  The market is holding steady.

BROCCOLI — a screaming market is the result of the freeze stopping growth and production.  Product is tight, and plants simply do not develop in freezing conditions.  Virginia and Carolina product is coming on strong which should alleviate some of the strain on the desert, although shippers are going to keep the market as high as possible, for as long a time as possible.

CAULIFLOWER — With the FOB market pushing the $30 range, shippers are going to keep raising the price until they  eventually kill the market.  Since cauliflower is hardest hit when cold weather sets in, its no surprise that it is the most expensive.  Quality defects such as yellow discoloration and black spotting have been found also.

LEAF ITEMS — blister and peel has really affected leaf and romaine, especially romaine.  Leaf supplies have been much more plentiful and harvesters are able to pick through the affected heads and shed many of the external problems.  Prices have not escalated high mostly due to the current volume of product.  Even if it doesn’t freeze anymore, effects of the freeze will show up for weeks to come.

CELERY — this market has been showing signs of life over the past week.   Christmas business is here and demand has been picking up.  Most of the product is still coming out of Oxnard, although we can get product transferred to the desert for loading.  There is still a  very wide spread in prices, with Dole topping the market. A few rain showers yesterday and today but clear for the net 10 days.  We have most likely seen the top of this market.

Ed Brem
www.producewest.com

WINTER HITS THE DESERT GROWING REGIONS

Although winter isn’t until another 2 weeks, it has come to the desert growing regions of Coachella Valley, Imperial Valley, and Yuma. Low temperatures over the weekend and this morning posted below freezing. Forecasts call for much of the same lows for the next 2 weeks, highs in the mid 60s to low 70s. No rain. The key is HOW LONG temperatures will stay below freezing. If it is 1-3 hours, damage will be minimal. When it get 5-7 hours at night and into the morning, THAT is when problems occur. Blister, epidermal peeling, and discoloration start showing up. Effects from those freezes can extend for months. With these colder temperatures, we expect to see just about ALL markets go up.

LETTUCE–even with lettuce ice this morning, there is plenty of lettuce at reasonable prices early this week. However, we see the market going up $2-3.00/box by the end of this week. You might consider buying more heavily early week. Quality holding up, as the freezing hasn’t had a chance to make an impact yet. Good color, size, and weights for now, but could be a different story by this time next week.

BROCCOLI–product spread ALL OVER California, from Salinas to Yuma. The “northern” districts are quoting less because of the lack of items to pick up. Even with lighter supplies, we aren’t sure how high this market will go. Supplies coming out of Virginia and the Carolinas will cover much of the east coast demand and keep shippers out west from going to crazy.

CAULIFLOWER–more than any major vegetable item, cold weather (or warm) effects cauliflower. When low temperatures hit, growth completely stops, and that is what we are seeing now. Prices are higher today than they were last week, and we could see shippers spike their prices another $4-6.00 by the end of this week.

LEAF ITEMS–good supplies of romaine, red, and green leaf, but with cold temperatures hitting, we could see prices double by this time next week. Romaine shows effects from freezing more than most leaf items, with blister, epidermal peel, and discoloring on the outside of the leaf. We should see the harvest workers trim off most of the effected heads for now, but if the temperatures get too cold, there could be real trouble.

CELERY–this weekend starts the first push for Christmas celery business. We don’t see the spike in price like we do during Thanksgiving, although we do see prices going up a little bit. Celery isn’t much of an item anymore for Christmas.

Ed Brem

ed@producewest.com

POST THANKSGIVING

In what is a typical post-Thanksgiving scenario, most of the vegetable markets are correcting themselves. In other words, going DOWN. Lettuce, romaine, leaf, celery, broccoli, cauliflower are ALL dropping in price this week. But, next weekend starts the pull for Christmas, so things could reverse again. ALWAYS fun in the produce world.

Long range weather in the “new” growing areas of Oxnard and the desert, show mild temperatures and dry. The desert is now the main area for lettuce, leaf, mix items, broccoli. We make it a point to watch temperatures there, as once we get freezing night, ANYTHING can happen, and usually does. For now, though, lows will be in the mid to high 40’s.

Trucks are readily available, although it usually takes a week for the trucks to get back on schedule after Thanksgiving.

LETTUCE–usually lots of lettuce ads after Thanksgiving, and this year is now exception. There will be a LOT of lettuce shipped out this week, but there is plenty available in Yuma and other desert districts. Right now, the market is trying to adjust after the high prices the past 2 weeks. We may see the market go lower than it should, and then could bounce back up. Quality out of Yuma is starting out nice, with good color, size, and weights.

BROCCOLI–supplies scattered from Salinas to Yuma, and points in between. This market has much correcting to do, and currently, we are seeing as much as a $5.00/box SPREAD depending upon the area, shipper, and quality.

CAULIFLOWER–this item is also coming off high prices, but is not coming down as rapidly as some of the other items. There were quite a few ads for Thanksgiving, so once the retails are changed, we should see this market slide further. With that, don’t buy to heavily.

LEAF ITEMS–romaine, green, and red are ALL trying to find the right place, as far as the markets are concerned. There is plenty of product in the desert, plus there is still product coming out of Salinas, Santa Maria, and Oxnard. This competition will force prices down all this week.

CELERY–prices are nearly half what they were for the Thanksgiving push. We will see the celery market continue to slide, then firm back by the end of next week. Dole continues to be $3-5.00 higher than the mostly market. Hearts are available, and that market remains strong.

STRAWBERRIES–Florida is gearing up, and that will help release pressure for California fruit. Driscoll has pushed their market in 8/1# ANOTHER $2.00 this week, and quality is poor to fair. They are basically saying “go to Florida”.

Ed Brem

ed@producewest.com

POST THANKSGIVING BUSINESS

Now that the Thanksgiving push is over, we now have to pick up the pieces and continue on.  Supply chains and wholesalers are stocked up and ready for business.  We expect buying to be slim this week and will continue into next week.  Post thanksgiving leftovers will suffice families for days after the initial holiday, turkey sandwiches, turkey casserole; turkey surprise will be on the menu for most families.  As we settle fully into Yuma and Imperial Valley growing regions, early reports are positive for lettuce and leaf items.

Weather has been nice in Yuma, producing some nice early lettuce, something we can hopefully look forward to in the coming months. Huron product was not up to par and we are currently seeing the negative effects of this as product arrived this past weekend.

Salinas weather is cold, wet and rainy.  Some broccoli and celery is still in the area but most product has shifted south.  Huron is not much different.  Shippers could not exit Huron fast enough as product quality fell far short of expectations.  Oxnard is expecting some scattered showers over the next few days, but temperatures will remain slightly coo to mild.  Yuma weather is excellent, no rain in the forecast and temperatures nearing the 80 degree mark.

Truck rates have come off from last weeks highs, there are plenty available early this week.  We will see a drop off in availability towards the end of this week.  The day after thanksgiving will be difficult to get trucks mostly due to the fact that truckers generally take the rest of the weekend off to be with family. Get orders in asap.

LETTUCE — Early Yuma reports show nice lettuce with good weights.  Weather looks nice for the next 10 days.  There seems to be plenty of product filling up the coolers today and we could see the market drop significantly towards the middle of this week.

BROCCOLI — Supply is improving this week, however prices are still high. Quality is nice.  Some shippers are finished in Salinas areas and are moved to Yuma.  Weather has been nice and should bring on some nice broccoli material.  Demand will come off and the market should settle by later this week.  Also, Virginia and Carolina are pumping out supplies, which will affect the west coast markets.

CAULIFLOWER — Product is still tight industry wide.  The market reflects that and shippers are keeping FOBs as high as they can because availability is so limited.  Yuma product will be coming on and should calm the market down to the mid to upper teens by weeks end. Availability is expected to improve in the next few days.  Quality is about what you would expect for a $20+ market. Anything that resembles a head of cauliflower goes in the box.

LEAF ITEMS — Huron quality has not met expectations, and we are glad they are about done.  Condition defects such as red ribbing, browning and decay starting to emerge as the last of the Huron product arrives.  Romaine seems to have most of the quality problems. Reports of green and red leaf have shown light weights and feathering.  Early Yuma reports are optimistic.  Plenty of product for the next coming weeks.

CELERY — Demand never met our expectations for thanksgiving.  Product was plentiful across the board which kept FOB prices down. Another factor that kept the market from gaining steam was the high freight rates.  With only 32 cases per pallet, its difficult to spread freight costs to reflect a desirable delivered price, so as long as freight remains high, FOBs will hit a wall.  Hopefully Christmas business shapes out better.

STRAWBERRIES — the weather pattern we are into, where we seem to get rain every 5-7 days, is NOT helping out strawberry quality or availability. Driscoll has some supplies out of Santa Maria, Oxnard, and McAllen, Texas, but quality is only fair, with leathery skin, rain spots, and decay upon arrival.

Ed Brem

ed@producewest.com

THANKSGIVING PUSH

This week, trucks are loading product for Thanksgiving business to eastern destinations. This is probably the most exciting time we’ve had since Memorial Day business. Shippers are pumped up, anticipating BIG business on items such as celery, broccoli, cauliflower, brussels sprouts, lettuce. With this increased business, the markets are ALL reacting upward. And while this week will certainly be crazy, it will come to a screeching halt by next week, when the last of the eastern business stops, and just west coast business will be going.

Long range weather in the growing regions shows cooler weather this week, but less rain than had been anticipated.  Salinas, Huron and Yuma all show the possibility of rain Sunday.  Luckily we will be past the major holiday push by then.

As can be expected, truckers are pushing their rates up for the holiday and demand is ensuring they get those rates, however we should see a significant drop by later next week and rates may settle back to where they had been a week ago.

LETTUCE — Mostly loading in Yuma now.  Early reports show lighter weights, ribbing and feathery heads.  This is typical for this time of year, we should never expect perfect quality when so many variables like weather and crop transition are added to the mix.

BROCCOLI — Very tight.  Ad commitments are putting shippers in a difficult spot, volume is decreasing and markets are going through the roof.  Many ads that were set up months ago are not being honored due to lack of product.  Of course it is easy for a shipper not to honor a $10-12 ad when the market is $24 FOB.  A maddening scenario but all too common in our industry.

CAULIFLOWER — Also very tight.  This cold weather has brought production to a standstill and the little product that is out there is nearing $30 FOB.  That puts delivered prices into the mid to upper $30 range.  This will be a market killer once Thanksgiving push is over.  Salinas product will end production around Thanksgiving time and Yuma will be in full swing.  Early reports show product is holding up, however if Yuma gets a significant amount of rain this weekend we could see some problems further down the road.

LEAF ITEMS — Prices are going up on all leaf, romaine, green, red, boston.   Shippers are inflating prices as high as possible this week to make up for a poor summer market.  Product condition is less than satisfactory; most shippers will put anything in the box to capitalize on high markets.

CELERY — FOB prices hit a wall last week, mostly due to high freight rates.  As long as east coast truck freight nears the 8000 dollar mark, we are not going to see a 20 dollar celery FOB.  Quality is nice, temperate days mixed with cool nights have provided nice growing conditions.  Product is mostly available in Oxnard and Salinas ends this week.

STRAWBERRIES — Huge pro rates currently.  We are now in the pattern of about 1 rainstorm a week, and berries cannot hold up consistently under those conditions.  Florida berries will be starting in a few weeks.  Quality is marginal and most shippers are not willing to go east, with the exception of Driscoll and only a handful of other shippers.

Ed Brem

www.producewest.com

DEMAND PICKING UP

Fall is definitely in the air, nights are getting colder, longer, and days are becoming cooler. Indian summer is nearing a close and more threats of rain are upon us.  East coast and Canadian regions are finished or finishing and more focus is put out west.  Thanksgiving is in the spotlight now and we are gearing up for the busy season.  Ads are being set up for the holiday demand.  Early Yuma crops will be ready as soon as next week and some shippers are getting ready to harvest various items as early as this coming weekend.

Long range weather in Salinas shows cooler temperatures for the next 10 days and showers scattered towards the end of this week.  Huron weather is slightly warmer and less precipitation.  Yuma is having some nice growing weather, temperatures are ranging from the high 70s to low 80s.

Trucks are still plentiful; however rates are getting slightly stronger as west coast demand picks up for the anticipated Thanksgiving pulls.

LETTUCE — Yuma will start the early stages next week, but the main volume and best quality is coming out of Huron.  Overall quality is getting better than it was two weeks ago.  There is still a little ribbing, but nothing near the problems of last week.  There is a chance of rain towards the weekend that could cause some quality defects.  Weights are improving, 37-41 lbs. for wrap 24s.

BROCCOLI — Quality is ok, supplies are getting tighter with better demand starting for Thanksgiving.  Central valley broccoli is in full force and should keep the market from getting out of control.

CAULIFLOWER — Tighter market these past two weeks.  Product is not developing in the cooler weather.  Supplies will continue to be tight for the next few weeks and demand will continue to increase which should spur the market up a few dollars as we head towards the latter end of the week.

LEAF ITEMS — Product is still coming predominantly coming out of Salinas.  Quality is ok, considering the range of conditions it has been exposed to.  There have been reports of some red ribbing and fringe burn from the cold winds, which is normal for this time of year.  Volume is adequate for the current demand, but limited due to the amount of poor quality product that is left in the field.  Market could get stronger later this week, especially if we get a reasonable amount of rain. We don’t expect the market for red, green, and romaine to go too goofy, as these are typical Thanksgiving items.

CELERY — Thanksgiving business nearing and shippers are preparing for business to increase.  Supply is heavy according to early reports and we may not see much of a market into the holiday push.  Quality is fine, all sizes are readily available.  Oxnard is starting up and filling an already flooded market.  Prices are not expected to jump until the end of next week.

STRAWBERRIES — Plenty of fruit this past week out of Salinas and Oxnard.  Quality hasn’t been  great, but adequate.  Rain is expected later this week and that could delay production and  result in pro rates and higher prices.  Still plenty of berries coming out of Mexico and loading in Texas.  Colder weather and longer nights will slow California fruit development, so expect the market to improve by the weekend. Driscoll is still the best way to go.

Ed Brem

ed@producewest.com

MORE DEMAND FOR WEST COAST VEG


As the east coast and Canada finish up their veg deals, there is more interest for various California veg, including, broccoli, cauliflower, and celery that have otherwise been supplied by “local” means. Shippers our west have been anxiously awaiting this demand to help get some of these markets off the floor. With Thanksgiving business scheduled to start as early as the end of next week, this demand can’t come soon enough for western shippers and growers.

After a late heat spell in Salinas last week, we are back to normal for this time of year, with early morning overcast, followed by clearing in the afternoon. Highs in the upper 60s-low  70s. No rain in sight.

Trucks readily available and rates have leveled out. We will probably see higher prices starting the end of next week that will continue strong through Thanksgiving business.

LETTUCE–Most shippers have moved their operations to Huron for the 2011 fall deal. There are some shippers that hang around Salinas and Santa Maria through the fall, but the better quality will be out of Huron. And that term is used LOOSELY. The lettuce in the Huron area is very typical for the Fall. Smaller, light weight lettuce, with not much head formation. There are also internal problems, that actually don’t show up on the shelf. It isn’t until you cut into the head that you see internal tip burn. It’s really no big deal, but it IS a score able defect. The good news is that quality should improve weekly. The market is currently much stronger than it has been in weeks, and delivered prices to the east coast will be near $20.00 for wrap 24s. We expect shippers to continue to drive prices up as long as they can.

BROCCOLI–continued wide range in price, especially on crowns, with as much as a $5.00/box spread, depending upon the shipper, label, and area. However, just about everyone has good quality, so you might as well shop around. Bunch 14s and 18s are also available. This market should start to make a move upward, by the end of next week.

CAULIFLOWER–definitely more interest in California flower. Canada has all but finished, and jacket flower is also almost done. The current market is a bit wide ranged, as shippers are trying to find what where the market should be.

LEAF ITEMS–even though the market for red, green, and romaine is fairly wide ranged, the overall trend is for higher. This, again, is attributed to the east coast and Canada finishing their crops. We don’t see these markets going too high, as these aren’t traditional Thanksgiving items.

CELERY–all ads are set and orders placed for Thanksgiving, so now all the shippers have to do is wait until the end of next week, when the pulls start. Right now, though, there is no change, with shippers dealing on the larger size 24s and 30s and scarcer on the 36s and 48s. Hearts continue strong.

STRAWBERRIES—the Fall crop in Oxnard and Santa Maria have started, as well as berries crossing from Mexico, via McAllen, Texas. Salinas and Watsonville will continue until the rains come, which could be the middle to the end of November. Quality has definitely improved after the rains that hit 2 weeks ago, and we are also favoring the new districts of Oxnard and Santa Maria for our berry needs.

Ed Brem

ed@producewest.com

TRANSITION TIME

10/17/11

It’s getting that time of year when we move from Salinas to Huron for various vegetable items, in particular head lettuce. So, while there are some shippers that will continue to have lettuce in Salinas well into November, many of the bigger shippers are now moving their operation to Huron and Bakersfield areas. This will cause a bit more stress for truck pickup and higher freight rates for mixer loads out of California to midwest and east coast destinations.

Long rang weather shows mild temperatures with highs in the mid 70s, lows in the 50s, and no rain in sight.

Trucks are readily available, as the tree fruit and melon deals wind down. Rates are lower and should continue their flexibility until the first of November.

LETTUCE–transition time happens twice a year, and is usually no fun. Finishing up the Salinas lettuce deal and moving to Huron presents quality issues. The “old” lettuce in Salinas in mostly tired, with good size and weight, but doesn’t have the “legs” in the stores. The early Huron quality has its share of issues, with internal problems, light weight, and not much head formation. Take your pick. The market is holding at lower levels because there isn’t any gap in supplies, even with the transitioning. However, we could see a stronger market by this time next week.

BROCCOLI–good, strong demand for bunch and crowns, especially crowns. There ARE some deals out there for off labels, so shopping around could be advantageous. Quality out west is mostly excellent, although there are some reports of pin rot due to last week’s rain, followed by warm temperatures.

CAULIFLOWER–definitely a stronger market here. Heavy supplies have been going out the past few weeks, and, as noted in last week’s bulletin, the rain accelerated growth and production, so we are now seeing a gap in supplies, causing this market spike. While we encourage heavier buying early this week, this could be short lived, so don’t order too heavily this weekend.

LEAF ITEMS–steady on green, stronger on red, and lower on romaine. This is an item that shopping around would be the way to go. Some shippers have good supplies of green, and no red. Others have red, light supplies of green, and no romaine. You get the picture.

CELERY–this market continues flat for the next few weeks, until Thanksgiving business kicks in. DOLE continues to lead the way, and is demanding $1-3.00/box MORE than the general market. The main push continues to be on the larger size 24s and 30s. 36s and smaller are higher in price, due to strong demand for hearts.

STRAWBERRIES–even though our weather has straightened out, most shippers have either pulled the pin for the season, or don’t want to go too far east with what little supplies they DO have. Driscoll, however, is just STARTING their Oxnard deal, as well as beginning their Mexican deals, which cross in either McAllen, Texas, or San Diego. They have pushed their prices about $2.00/box every week for the past 3 weeks, and are looking for higher this week. They are trying to kill business. Business that they don’t really need, so by raising their prices, they hope to accomplish that. Quality is still just fair in Salinas/Watsonville(the “older” districts), so the better areas are now Santa Maria and Oxnard. Still, don’t hold ANY fruit. Move as quickly as you can.

Ed Brem

ed@producewest.com

EARLY RAINS OUT WEST

Last week’s rain in Salinas, Santa Maria, and central California was highly unusual. Not unusual that we got rain in October, but unusual for how MUCH. 1-2 inches fell during a 3 day stretch, and that is a LOT for this time of year. Heavy damage was done on strawberries and the fall wine grape crop.

Trucks are readily available, and rates have slipped quite a bit to the east coast. They should continue to slide until the start of the Thanksgiving business that starts in about a month.

Long range weather shows a chance of light rain tonight, but after that, it shows wide open for 10 days, with days in the 70s and 80s.

LETTUCE–the rain hurt lettuce in Salinas and Santa Maria last week, with muddy, wet product, and broken mid ribs due to the brittleness, that will show up red at receiving. Keep in mind that we are winding down the Salinas lettuce deal, and even under GOOD conditions, the lettuce quality gets suspect, as it starts to look tired, and doesn’t have the “legs” that peak season does. The market is fairly steady at the bottom. We could see things go up by this time next week.

BROCCOLI–more demand for west coast broccoli, as the east coast and Canada starts to wind down. There is plenty of product in Salinas and Santa Maria areas, and the quality is second to none. Prices are steady.

CAULIFLOWER–the rain last week actually acted as a shot of fertilizer, and there is plenty of flower out west. However, we are watching the quality and going with fresh product. The rain can cause black spotting, and will show up at the receiving end. Good deals on all sizes, 9s, 12s, and 16s.

LEAF ITEMS–stronger market on red, green, and romaine. Romaine has already been the top priced veg item in Salinas for several weeks now, and things continue strong there. Even though red and green are stronger, there are still deals out there.

CELERY–still no change and the market is on the floor for 24s and 30s. 36s are a bit stronger, and 48s are higher, and hard to find. The reason is that the smaller sizes are going into hearts, and that market continues red hot. We see the same pattern for the next few weeks.

STRAWBERRIES–a REAL mess. That rain put a huge hit on supplies last week, and this week shippers are “stripping” fields, so there won’t be much available until the end of the week. What IS available is NOT good. Lots of light colored fruit, dirt, leathery spots, and just plain nasty. Still, shippers (especially Driscoll) are saying, “if you can’t take the fruit with these problems, give us back your orders”. In other words, if you buy it, you OWN it.

Ed Brem

ed@producewest.com

FALL WEATHER

Here we are officially into fall and we are already seeing a change in weather patterns.  There is a chance of rain this week and the real question is how much.  Some forecasters are saying half an inch to 1 inch and some say we will be lucky to see any rain at all.  This early rain is similar to last year, however we hope that the rain is minimal.  Shippers are still crying the blues of a down market and are hoping for any type of disturbance in the weather to stir up the market and create some sort of demand.   The East coast and Michigan are still producing cheap product and finishing out a successful year of local product.

Long range weather shows chance of rain Monday night and a more likely chance of rain Wednesday.   If we get a significant amount we could see some quality problems in certain items, as well as delayed harvesting crews.

Cross country truck rates are settling down into the low 7000 range for mixer type loads and trucks are available.

LETTUCE — Plenty of product to sell.  Shippers are loaded with high quality product and good size and weights.  If rain persists we could see supplies diminish somewhat because of delayed harvests, however we would need a high amount of precipitation to cause any such problems. It would be smart to take advantage of the low prices as quickly as possible because of possible rains this week.

BROCCOLI — Market has come off slightly from last week and shippers have plenty of product in the cooler to sell.  Quality has been good for the past few months and is expected to continue.  Maine and Virginia areas are still supplying the East will broccoli which have kept FOB prices low out west, but high freight rates have resulted in only slight interest in West coast broccoli.

CAULIFOWER– Shippers need to sell and are taking offers.  Quality is excellent and there are plenty of deals to act upon.

LEAF ITEMS — Not much change on red, green, or boston, and low markets.  Romaine is the only item showing any signs of life, although demand is still not up to speed. Quality is excellent across the board.

CELERY — There is still plenty of celery available and all shippers are looking to move.  Prices are low for this time of year because freight rates are high and Michigan product has been plentiful.   All sizes are readily available.  We expect this market to pick up in a week or two as eastern and Canada regions finish up and more pressure is placed upon west coast product.

STRAWBERRIES –Plenty of fruit available and quality has been good. Pro rates have been rare these past two weeks.  Driscoll berries are $4-$5 higher than other shippers, and quality seems good throughout the industry.  This week’s forecasted rain will tighten up supplies and we could start seeing heavy pro rates by the end of this week depending on how much rain we end up getting.

Ed Brem

www.producewest.com