CHRISTMAS BUSINESS GEARING UP


Still difficult to believe, but 2010 is nearly done. It seems like summer just finished, let alone, Fall, and Winter is right around the corner. The first Christmas business will be going out as early as this weekend to East coast points, and then hitting it hard next week.

Long range weather actually shows warmer weather in the desert growing regions, and little or no freezing. We need to keep that going. Last week’s freeze was minor, but there was some damage done, in the form of blister, peel, and discoloration on various items, and a drop in yields.

Trucks are abundant this week, and rates are dropping. They should continue to come down, this week, and then should firm for next week’s Christmas demand.

LETTUCE–the freeze last week hurt some supplies, as well as created some minor problems with quality. Most of the shippers are doing a good job trimming out the frost damage, but there IS some, although very minor. The market has firmed up a bit since last week’s fall, now that retails are changed. We see a steady situation all week.

BROCCOLI–there is just NO broccoli around, bunch OR crowns. People are scrambling to get orders covered out of California, Arizona, Mexico, Virginia, Georgia. Wherever. The market is crazy, with bunch close to $20 fob, and crowns $22-25 fob. There are some ads out there for Christmas, but supplies will be limited.

CAULIFLOWER–name your price and you can get it. We have heard prices of $30-35.00 fob, and buyers not batting an eye. The processors NEED cauliflower, and any product put in cartons is being sold at ANY price. This has GOT to come to an end, but don’t expect it this week, even with higher retails.

LEAF ITEMS–quite a wide range in price on red, green, and romaine, with as much as a $5-6.00/box SPREAD, depending upon the area and shipper. These are items you need to shop around a bit, as it will be worth it.

CELERY–stronger market on the larger size 18s and 24s, while 30s and 36s continue to stay flat. But, this coming weekend and into next week is the 2nd biggest put for celery, behind Thanksgiving. so we should see the market pick up in price. We don’t see anything crazy, though.

STRAWBERRIES–Driscoll has pushed their fob price to $30.00. You would think that would kill demand Orders keep coming in, even if they are light. We thought business would die at $20-22.00, but hasn’t. Once Florida gets going in the next 2 weeks, it will definitely have an effect on California’s business. For now, California is the only game in town, and the shippers know it.

Ed Brem

ed@producewest.com

GETTING COLD IN THE DESERT

Hopefully this isn’t a prelude to December’s weather outlook, but the next few days is supposed to be below normal temperatures, with a touch of freeze in the desert growing areas. As we all know, December weather can create a real disaster with regards to quality and supplies of various veg items, not the least of which are lettuce, romaine, leaf, cauliflower, broccoli, green onions, and other assorted items that are susceptible to freeze damage. Not only quality, but markets can really take spikes upward, depending upon the damage and delay in growth and harvesting that happens.
Trucks are getting back to normal after the Thanksgiving holiday weekend, and rates should start to settle back down.
Long range weather in the desert growing regions show below freezing at nights for the next 2 days, then warming to above freezing. Daytime highs should be in the low 70s.

LETTUCE–market coming off after the shippers ran prices up the past 2 weeks. Supplies aren’t  overly heavy, so its more a factor that retails are pushed up, and that has slowed the demand. Cold weather may slow production this week, and firm up the market.

BROCCOLI–cold temps in Salinas and Santa Maria have slowed down growth and production of bunch and crowns. The desert isn’t getting going as fast as we had hoped for, either. This is keeping prices strong, and we see it that way this entire week.

CAULIFLOWER–in a word, THERE IS NO CAULIFLOWER!  Again, the past few weeks of cold has slowed growth and harvesting to a standstill. You order 4 pallets of cauliflower, and you get one. You order 6 pallets, and you get one. You order 10, and you get one. Notice the pattern? The market is closing in on $30.00 fob, and will keep climbing, until folks stop buying . Basically, the shippers can ask for any price they want, and it doesn’t look to get better anytime soon. We need warmer temperatures.

LEAF ITEMS–strong market on red leaf, boston, and green leaf. Romaine is firm with most shippers, but there are some deals out there. With the cold weather coming in, we will see some damage done, with romaine, in particular. Just how much damage remains to be seen. Expect the markets to remain active on all leaf items if that happens.

CELERY–after Thanksgiving, there is NO business. Even the “preferred” labels are showing sluggish sales and lowering to rock bottom prices. The freight cost is about the only thing keeping the delivered prices up. Hearts, however, are still holding firm.

STRAWBERRIES–With the cold weather, prices look to go up AGAIN. Driscoll is threatening to go up even higher than where they are now. We could see $30 delivered for a box of strawberries on the East coast. The shippers will just keep pushing up prices until people scream “UNCLE”.

Ed Brem
ed@producewest.com

THANKSGIVING

First of all, we at Produce West, would like to wish you all a WONDERFUL THANKSGIVING! Time to think about what we DO have, instead of what we DON’T have. And give thanks.

As usual, its like shutting off a faucet. The past 2 weeks were at a torrid pace. Today, either customers have TOO much product, or not enough. Too much, in most cases. Markets that had been pushed to the ceiling, are starting to back off, except items such as cauliflower and broccoli. Cool, wet weather is certainly slowing down growth and production on those items.
Long range weather in Salinas shows rain for a few days, then dry, but, below normal temperatures. The desert shows seasonal cool nights, and days in the high 60s to low 70s.
Trucks are available today and tomorrow, with most truckers trying to get back for Thanksgiving. There probably won’t be many around this weekend.

LETTUCE–this market could be on the verge of falling hard. After a big run up the past 2 weeks, with prices hitting $24 FOB, things are backing off. Retails are raised to offset the price hikes, and now business is backing off. Shippers don’t like to drop their prices on a Monday, because they will have to drop their prices from the weekend. Tomorrow, we see prices dropping. We are loading just about all of our lettuce needs in the desert.

BROCCOLI–even though demand has fallen, as Thanksgiving needs are covered, supplies are still light, especially for crowns. This market should start to come off, just not very rapidly. Cool, wet weather is keeping supplies light.

CAULIFLOWER–a REAL shortage here, and we don’t seek much improvement for another week to 10 days, AT LEAST. There is just NO flower around, and even if you do get any, its a pallet here and a pallet there. Prices are basically what the shippers can ask. We have heard $25 fob, and that could be a bargain.

LEAF ITEMS–we believe red, green, and romaine, will  ALL start to drift downward in price, even if the shippers don’t think so, so don’t order to heavily. Again, demand isn’t there, due to high retail prices. There is is some product available in Salinas, but we feel the best quality is in the desert now.

CELERY–the faucet has been turned off. The market never got going, except for preferred labels, such as Dole and T&A. But, even those shippers are looking for business today. We don’t see any hope for celery for quite a while. Christmas business may come and go without  a hiccup.

STRAWBERRIES–cool, wet weather in Salinas/Watsonville has finished off the season. Oxnard is going, but in a light way. Driscoll is continuing to pro rate their orders and holding firm their prices. Quality is a hit a miss project. Some arrive in beautiful condition, while others show 30% defects. Either way, don’t expect much in the way of quality, but DO expect to pay big money.

Ed Brem
ed@producewest.com

START OF THANKSGIVING BUSINESS

Today starts the first big week of Thanksgiving pull. Already, demand is picking up for the traditional veg items such as celery, broccoli, brussels sprouts, cauliflower, and carrots. Along with the demand, the markets are going up, as well. On top of that, we got a pretty good shot of rain over the weekend, which has slowed down harvesting of those items, along with just about everything else coming out of the Salinas Valley, or San Joaquin Valley. This means it will be slower getting product in from the fields, and trucks will get bottled up at the coolers. Not a lot of fun having to deal with these issues. Trucks are in good demand, and will probably be tight by the end of this week, going into the following week. Rates will stay firm with some of the high binders trying for more money as this week goes. Long range weather shows not much rain in sight for the next 10 days, thankfully, and temperatures will be starting to warm up by the end of this week.

LETTUCE–the shippers pushed this market up last week, and we thought things would come down by the weekend. It didn’t happen because of all the POOR quality in Huron, and shippers are having to throw away quite a bit of their volume. As a result the market is even stronger today, with some quotes as high as $20 FOB for wrap 24s.The rain that hit over the weekend is NOT helping the quality! The desert has started, but most of the volume continues to come out of the Huron/Bakersfield areas. The quality in the desert isn’t much better, but at least it is fresher looking. Either way, DON’T HOLD YOUR PRODUCT!

BROCCOLI–very strong market, especially for crowns. LOTS of ads tied up, and anything non-committed is going for $15-18.00 FOB, which is $20-23 on the East coast. Supplies are coming out of Salinas, Santa Maria, and San Joaquin Valley.

CAULIFLOWER–while not as big an item for Thanksgiving as broccoli is, demand has picked up along with the price, which is nearly double what we saw last week. We could see the market continue to climb slowly this week.

LEAF ITEMS–even though red, green, and romaine aren’t traditional ad items for Thanksgiving, we are seeing stronger demand and rising prices, mainly due to the iceberg lettuce market being so active. Romaine, in particular, is active.

CELERY–we should be seeing prices take off upward as Thanksgiving business gets started, and it is, but just now going crazy. Last year, you may recall, the market got shoved upwards of $20 FOB, and never looked back for several months. This year, MUCH more celery has been planted, and we are seeing much heavier volume. On top of that, Oxnard has started, and they normally don’t get going until the second week of Thanksgiving business. Overall, we don’t see this market going crazy, and may even end up LOWER than the ad lids that are out there.

STRAWBERRIES–the rain in Salinas/Watsonville yesterday just about put the nail on the coffin for this area. Oxnard and Santa Maria are about the only games in town and demand is VERY strong and high priced, for what little volume they are doing. Quality is VERY suspect, so get them in, and get them out as quickly as possible, and don’t expect anything with bells on it!! Ed Brem

ed@producewest.com

THANKSGIVING BUSINESS

With Fall in full swing, it is time to look towards Thanksgiving and anticipate what will be in store for our industry.  This weekend will be the official start of the Thanksgiving pull and things will heat up from there on.  Product is still available in Salinas, but growing regions for lettuce have moved to Huron.  This results in more pickups for the trucks, and fewer on time arrivals.  Needless to say it can be a stressful time of year.

Truck rates have been falling over the past few weeks but will most likely flatten out towards the end of this week as thanksgiving business picks up, and even climb a bit.

Long range weather shows a warming trend for Salinas Valley and San Joaquin Valley this week with temperatures creeping into the 80s.  It is common in early November to have a few warm days as we finish the last of the Indian summer.  No rain in the forecast until next Monday. Hopefully we can get through the Thanksgiving demand before major rains hit.

LETTUCE — With Huron product in full production quality has been surprising satisfactory with few serious problems to report.  Because the past few months have been mild in the central valley, product was less stressed than previous years; however the adverse affect of the cool weather was smaller head sizes and lighter weights.  Because the market has not been extremely active, harvesters are able to pass up poor product and only put high quality in the box. The market is very strong, with delivered prices $22-25.00 on the East coast.

BROCCOLI — Pretty quiet this week, but demand is expected to pick up later this week.  Quality is nice.  Crown material is in lighter supply and we can expect that market to improve as we get closer to the holiday pull.

CAULIFLOWER — Market is still flat, not much to report here.  We expect cauliflower to start to follow the trend of the other items later this week,  the market has been flat for too long now and it is about time for conditions to change, which should come starting this weekend.  Quality is good.

LEAF ITEMS — Plenty of red and green leaf at competitive prices. Romaine has been slightly more active, nearly doubling red and green prices. Quality is good, no major issues to report.  Romaine market has already made a move and we expect red and green to follow the suit later this week.

CELERY — Plenty of product going into the holiday.  Growers planted heavy this year and demand has not met expectations up to this point.  Oxnard is starting and product is readily available.  Normally they aren’t a factor until the 2nd week of Thanksgiving business. This could be a sign that the market may not go crazy, like it did last year. Quality is fine and we are seeing good volume on all sizes.  Demand is expected to pick up next week.

STRAWBERRIES — With the Salinas growing season over, our focus is exclusively on Santa Maria and Oxnard areas.  Quality is marginal at best, with most shippers not wanting to send them too far east.  Demand has backed off as it normally does this time of year and as long as we don’t get too much rain in the south, supply and condition will improve.  Driscoll pushed their price $6.00/box over last week, hoping to kill the demand. For the most part, they succeeded.

Ed Brem

www.producewest.com

MARKET HEATING UP FOR THANKSGIVING


We seem to go through this every year in the Fall. Early rains, transitioning from Salinas to the Huron/Bakersfield areas, cold snaps, starting Thanksgiving business. These all add up to unsettling markets, giving the shippers ample reasons to raise their prices. Just about all of the major items, lettuce, broccoli, cauliflower, celery, leaf items, strawberries are ALL on the rise.

Long range weather for the next 10 days show chances of rain towards the end of this week. Trucks are readily available and rates are variable, since we are transitioning from Salinas to other areas of California and Arizona.

LETTUCE-most shippers have moved their supplies to Huron area. Quality in BOTH areas is suspect. Salinas supplies are showing old, tired product, with red discoloration and pale, while the Huron product is starting out light weight and internal problems. The market is VERY active, with shippers nearly double in price where they were at this time last week. They will push for more as the week progresses.

BROCCOLI–this market also on the rise. More East coast business is coming in, and the shippers see that and push their prices. There are a lot of broccoli ads for Thanksgiving, so this market is “made” for the next month.

CAULIFLOWER–like broccoli, this market is climbing. While not a big item for Thanksgiving, it is a “cooking’ vegetable, nonetheless, and a natural for the season. Expect prices to continue to climb this week. We could see $20 by this weekend.

LEAF ITEMS–green, red, and romaine are ALL on the rise, while moving along the coattails of head lettuce. Romaine, in particular, is easily going to be $20-25.00 on the East coast.

CELERY–shippers pushing their markets to get in line with the Thanksgiving lid prices they have put out. Oxnard looks to start about the middle of November, which would allow them to participate in the 2nd week of the Thanksgiving push.

STRAWBERRIES–the rain we experienced in the Salinas/Watsonville area yesterday(Sunday) will knock these shippers out for a few days, but there is another storm scheduled to come in by Thursday or Friday of this week, which will continue to hurt harvesting and supplies. The product that IS being picked is marginal, AT BEST. So, don’t expect much. It is THAT time of year.

Ed Brem

ed@producewest.com

HURON TRANSITION

As November approaches and days are getting shorter and cooler, it is time to transition growing areas from Salinas to Huron.  Of course there are always obstacles to overcome with quality and availability as we move to different growing regions, something we see every year.
Rain hit the central coast this past weekend, weakening the quality of many items.  More rain is in the forecast later this week, but as of now only a 30%  chance.  Temperatures are mild and nights are getting cooler, fall is definetely in the air.
Truck rates continue to sink closer to the 6000 mark and possibly even less by later next week, but with fuel prices expected to go up during the holidays, rates could bottom out in early November.

LETTUCE — We are now beginning the transition from Salinas to Huron growing areas.  Many shippers are now exclusively Huron.  Expect lighter weights, although this shouldn’t be a shock to the industry because Salinas has been producing lighter heads these past few weeks.  Huron lettuce varieties generally have more ribbed appearance and outside leaves can break and decay during shipment. Just be aware that these are industry wide issues.

BROCCOLI — Good quality all around.  The market is holding steady and has remained consistent with last weeks conditions. No quality issues to speak of.  Local Eastern operations are closing down for the season and focus will now begin shifting towards the west.

CAULIFLOWER — Cool weather has slowed the larger sizes and expect more 12 and 16 sized cauliflower this week with fewer 9s.  Quality is fine.  Some yellowing last week but it seemed to have been short lived.

LEAF ITEMS — the market still remains flat on red and green leaf.  Romaine had seen a few dollars more but there was not enough demand to really keep the trend moving.  Some quality issues to speak of.  Because of the extreme fluctuations in temperature these past 2 weeks the plants have been stressed, resulting in tip discoloration and burn. There has been some mold and mildew but product is getting cleaned up.

CELERY — Plenty of large sizes available and fewer smaller stalks.  Quality is fine,  Oxnard will start in 2 weeks.  Early Oxnard reports have been positive.

STRAWBERRIES — Our recent bad weather has not helped quality and availability. Much lighter supplies have been damaged by yesterday’s rains.  Reports have come out that if we get any more rain later this week the Salinas/Watsonville crop will be finished for the year.  Oxnard is starting now, however, there are very light supplies.  Supplies should begin to increase in Oxnard in the coming weeks, although if Salinas production ends abruptly, heavy stress will be put on Oxnard fruit causing hot markets and heavy pro rates.

Ed Brem
www.producewest.com

FALL WEATHER ON THE WAY

After a record heat spell last week that hit California growing regions, we are now starting to see more Fall-like weather. Cooler days and cooler, longer nights; a pattern which will start to slow down growth and production of just about all fruits and vegetables, and will see some market fluctuations. THIS is the time of year where we can see wild market swings, depending upon weather.

Trucks are available, and rates continue to slip for most areas of the country.

Long range weather for Salinas area show cooler days, and even a chance of rain later this week. Again, we had a heat spell last week, where we were in the high 90’s to low 100’s. Now, we won’t see higher than mid to high 60s this week.

LETTUCE–shippers tried to get the market up today, and came out with higher prices. By mid morning, they backed off. Still, we see the over market getting off the floor this week, with prices going up $2-3.00/box by the end of this week.

BROCCOLI–no change. Plenty of bunch 14s, 18s, and crowns. Too much Eastern product to change things. Still, with low prices and EXCELLENT quality out West, this is a terrific ad item.

CAULIFLOWER–we see this market going up by the end of this week. The hot spell last week brought on product, and also put some fields into shock. Supplies are expected to drop off as this week progresses, so we could see the market double in price by this time next week.

LEAF ITEMS–plenty of red, green, and romaine, and prices, while fairly wide spread depending upon the shipper, are still reasonable. There was some damage done from last week’s heat spell, with tip burn and yellowing, but most shippers are doing a good job trimming out the problems.

CELERY–no change, although there are signs these markets could start to gather strength.  There shouldn’t be much market change until the end of this week, if it does at all. Heart 12s and 18s are available.

STRAWBERRIES–even though supplies continue to drop, demand just isn’t there. The heat spell hurt supplies, and shippers are saying volume is off 25-30% over last week. Still, you have to have demand to raise a market, and there just isn’t much.

Ed Brem

ed@producewest.com

RECORD HEAT

Salinas Valley heat breaks record .  A statewide heat wave didn’t spare Monterey County on Monday. The Salinas airport recorded a high of 102 degrees, breaking the 1970 record by one degree.

Downtown Salinas was 101, just shy of its 1970 record of 102. The previous night’s low was just 46 degrees.

King City missed its record by one degree as well — 108 degrees in 1906. Temperatures are expected to gradually cool this week.

Downtown Los Angeles hit the highest temperature ever recorded since record keeping began in 1877: 113F

This heat puts many of the plants in shock, potentially damaging quality. There could be long term effects including burn on the leaf, bruising on berries and discoloration in broccoli and cauliflower.  There is some hope that this heat wave will be short lived and Salinas Valley temperatures will be back to normal later this week.

Produce West

FALL STARTS OUT WITH HEAT SPELL


Fall started last Wednesday, and we are currently in the middle of a heat spell, with temperatures hitting 104 degrees in southern Salinas Valley, where much of the summer and fall vegetables are coming from. This is not unusual.  Actually, we don’t experience much heat during summer months along the coast, but instead get out heat spells this time of year. Still, when they come, damage to vegetable and berry crops can happen. Burn on leaf, romaine, and head lettuce. Soft berries causing bruising and discolored calyxes, as well as discoloring on cauliflower and other veg items can occur. Fortunately, this time of year, the days are shorter and nights longer, so damage should be minimal. Still, the supply chain will probably be affected, and markets created.

Long range weather for Salinas/Watsonville areas show hot today and tomorrow, with a cooling trend starting Wednesday and into the weekend. No rain.

Trucks are readily available, with rates slowly coming down for various areas of the country. Due to our slow economy, there still isn’t much back haul business, from the East coast to the West. That is keeping truck rates fairly firm, for this time of year.

LETTUCE–still plenty of supplies in Salinas and Santa Maria areas, and the market remains flat. This current heat spell could affect the market, if product is lost in the southern Salinas Valley. We’ll see how things play out.

BROCCOLI–supplies still coming out of the East coast, which is keeping the market out west flat. Crowns, however, are still a bit tight, and commanding more money, than the usual spread between bunch and crowns. Again, the heat could put broccoli into “shock”, and there could be a gap in the supply chain for crown material by next week.

CAULIFLOWER–good supplies of 9s or 12s early this week. The heat could, and should, create a supply gap by this time next week. So, if you want to take advantage of the weak market, buy now.

LEAF ITEMS–good supplies of red, green, and romaine, although prices are fairly strong. The heat spell could also effect supplies of these items, as early as next week.

CELERY–not much change. Good supplies of 24s, 30s, 36s, and 48s. Heart 12s and 18s also available. Dole continues to top the market, and demanding $2-4.00/box more than the general market. We’re already working on getting Thanksgiving ads lined up.

STRAWBERRIES–the current heat spell could do some serious damage to the berry crop. Fortunately, the majority of supplies in the Salinas/Watsonville deals are coming out of Watsonville this time of year, and that area is closer to the coast, and cooler than southern Salinas Valley, which, as mentioned, is hitting 104 degrees. However, this heat spell will undoubtedly do damage to the crop, and we also look to see the market go up, possibly as early as this weekend. Get your berries IN and OUT QUICKLY.

Ed Brem

ed@producewest.com