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

MARKET BLUES

With plenty of local product still available across the country, demand and business is slow and markets generally weak for just about all the major vegetable items. Head lettuce, leaf, romaine, broccoli, cauliflower, and celery out of California are just barely staying afloat, marketwise.

Long range weather in the Western growing regions for the next 10 days show no change in the Salinas area, with days in the low to mid 70s and nights in the 50s. The fruit regions in Fresno show slightly cooler days, moving to the low 90s, instead of the high 90s and low 100s. These are all typical for this time of year. No rain in sight.

Still a shortage of trucks coming out West, and rates are hanging in tough to all areas of the country. $6800-7000 is pretty common from California to the East coast.

LETTUCE–not much action out there, and prices are weak. A box of wrap 24s is barely $10.00 fob, making it around $18-19.00 delivered to the East coast. Quality out of Salinas is good, with nice color, size, and weights. Good ad item.

BROCCOLI–even though there isn’t a lot of broccoli out West, the market is sluggish because overall demand is, too. We don’t see much change in this market until the East coast dries up, which could be another month. Still, we are seeing broccoli as a nice ad item, with low prices and nice quality.

CAULIFLOWER–this market is about as low as you can get right now. Again, this probably won’t change until local deals start to dry up. Good prices, availability, and quality on either 9s or 12s.

LEAF ITEMS–fairly steady on red, green, and boston, while romaine is a bit stronger. Even so, demand is only fair, so we expect all of the leaf markets to stay fairly steady in the next few weeks. Salinas is the major area to get you leaf needs and quality is nice on just about all items.

CELERY–not much change. Dole continues to be $2-4.00/box higher than the general market, but is finding resistance at those higher levels. Hearts are available, either 12s or 18s, and that market remains active.

STRAWBERRIES–we have about another month to go before weather becomes an issue. Demand is only fair due to the fact that many stores aren’t advertising berries any longer, concentrating on melons, tree fruit, grapes, and local apples, so not a lot of space on the shelves is given to berries. Still, Driscoll has been pro rating orders because THEY are light in supply. But, they are also finding resistance whenever they try to raise their prices. Quality is hanging in there, but we definitely recommend that you only order what you need, and don’t hold fruit too long. After all, fall is right around the corner, starting this Wednesday. When that time of year comes, anything can happen, and usually does.

Ed Brem

ed@producewest.com

COLDER WEATHER

9/13/10

After enjoying a slight warming trend over the past few weeks we are once again back to our colder weather that has been so prevalent these past few months. Product has overall been nice quality, but the cold weather stunts much of the growth and maturity of Salinas vegetables, making availability gaps industry wide and creating spikes in an otherwise flat post labor day market. Trucks are especially tight and rates remain significantly high. We believe rates to have topped off for the summer, they have been too high for too long and are about to hit the wall. Once availability increases, we will see rates begin to fall possibly as early as next week. Long range weather shows continually cool weather, staying in the low 60s into next week, and high fog throughout the days in the Salinas Valley. Central valley temperatures are cooler as well, but luckily have still been able to barely break the 90 degree mark needed to ripen up melons and tree fruit.

LETTUCE — Prices are consistent with last week, and availability is normal and steady. The colder weather throughout the week may slow growth and create planting gaps and possible market up trends later in the week but sales have to increase in order for this to take place. Quality is overall very good, but we may see some lighter weights as the week progresses.

BROCCOLI — market continues to firm up from last week and product seems to be moving quite nicely. Many growing operations in the eastern states are slowing down due to recent storms and quality is beginning to suffer, causing fewer numbers in the east and more demand out west.

CAULIFLOWER — quality is fairly good. Some discoloration in the outer plant leaves but nothing major to affect the inside quality. The market should hold steady if the weather remains cool, prices shouldn’t get any lower than they are now, in fact they may be a few dollars higher by the end of this week.

LEAF ITEMS– Romaine is the hot item and the market reflects that. Green leaf is also tight as it was last week and the cool weather should keep numbers down. Red leaf is much cheaper than the other leaf items as a result of a much better supply. Condition is excellent with very few problems to speak of.

CELERY–All sizes are hanging around at the same price level, quality is very nice and is expected to continue into next week. Because celery tends to be a much sturdier crop, the cooler weather has not made a significant impact. The weekend harvests saw fewer smaller sizes and more large sizes, but will not result in much more than a dollar or two difference in the sizes for now.

STRAWBERRIES — Thanks to the unseasonably cold weather, pro rates have been an every day occurrence in Salinas and Watsonville. The berries will not color up cold and windy weather. Normally we have a problem with the berries melting in extreme heat this time of year but there has been nothing normal about this year’s weather. Pro rates are up to 90% and trucks are waiting day and night for product. Because we see no change in weather, we have to anticipate that berries will continue to be tight throughout this week and into next.

Ed Brem

ed@producewest.com

POST LABOR DAY BLUES

As we head past the Labor Day weekend we should expect a slower week as people stuff their refrigerators with left over’s.  Many of the markets that had been picking up steam a few days ago are now forced to slow down and make way into the post Labor Day blues.  Weather in Salinas has been warming up, even to the point of a few 100 degree days followed by 70 and 80 degree ‘recovery’ days.  Trucks are still at season high rates but should be lower in the coming weeks as the summer months draw to a close.   There is still plenty of home grown and local product around the country to keep business out West slow for many items. Broccoli, cauliflower, celery, leaf, cukes, tomatoes, peppers, berries, and many other items are still available locally for now.

LETTUCE–Market has been slowly coming off and will continue post labor day.  Product has been slightly stressed due to the recent heat spell but there is enough out there to keep quality consistent and

BROCCOLI–a bit stronger market here, especially on crowns. Demand hasn’t picked up much due to the availability of broccoli on the East coast. Even so, shippers are trying to push prices upward today. We don’t see rally lasting very long.

CAULIFLOWER–the market had been quickly improving all last week; however business is slowing down after the holiday.  The heat has caused some sun damage on the larger heads, but they are trying to sort through them.  There should be a lot more product coming in over the weekend which should soften the market.

LEAF ITEMS–green leaf is still hard to come by which is why the overall market doubles that of red leaf.  Romaine has been experiencing some fringe burn due to excessive heat, but that is normal for this time of year and there is plenty of product out there.

CELERY–All sizes are hanging around at the same price level, quality is very nice and is expected to continue into next week. Like most items mentioned, demand is only so so, and the push for higher prices from the shippers don’t seem to make much of a difference to most receivers around the country.

STRAWBERRIES–Driscoll continues to lead the way with price and overall quality. They are consistently $2-3.00/box higher than the general market. Their quality is also consistently better than the rest, however with the cool Summer we have had, there are some nice boxes of fruit out there from various shippers.

Ed Brem

ed@producewest.com

STILL PLENTY OF LOCAL PRODUCT

August is done, and September usually starts us thinking about Fall, but we are nearly 4 weeks from there, and there is PLENTY of home grown and local product around the country to keep business out West slow for many items. Broccoli, cauliflower, celery, leaf, cukes, tomatoes, peppers, berries, and many other items are available, and will be for another month, at least.

With Labor Day weekend coming up and schools starting, trucks are a bit scarce, as they want to enjoy the last extended weekend. Rates are fairly steady from the past few weeks.

Long range weather shows slightly warmer in the Salinas/Watsonville areas and still hot in the San Joaquin Valley.

LETTUCE–the shippers pushed this market last week, and prices were $20 and higher for a box of wrap 24s on the East coast. This has stalled out the demand, and the market is floundering. We don’t see a lot of business after Wednesday, so the market could come off. Quality is holding up nicely, even with our mini heat spell last week.

BROCCOLI–a bit stronger market here, especially on crowns. Demand hasn’t picked up much due to the availability of broccoli on the East coast. Even so, shippers are trying to push prices upward today. We don’t see rally lasting very long.

CAULIFLOWER–the few hot days we had in Salinas last week hurt the flower deal a bit, quality and supply-wise, and the shippers have pushed their prices to nearly double what they were last week at this time. But, again, we don’t see this market holding up. There just isn’t much demand around the country, and business will probably slow down by weeks end.

LEAF ITEMS–plenty of romaine, red leaf, and boston, while green leaf is a bit more scarce, and higher in price. In a nutshell, receivers just don’t care about leaf items, and that reflects in the overall market.

CELERY–a bit stronger market undertone on 24s, 30s, and 36s. No real reason, except that supplies are lighter right now due to a slight supply gap. Like most items mentioned, demand is only so so, and the push for higher prices from the shippers don’t seem to make much of a difference to most receivers around the country.

STRAWBERRIES–Driscoll continues to lead the way with price and overall quality. They are consistently $2-3.00/box higher than the general market. Their quality is also consistently better than the rest, however with the cool Summer we have had, there are some nice boxes of fruit out there from various shippers.

Ed Brem

ed@producewest.com