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

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