The cold weather in the desert growing areas have really put the clamps on growing and harvesting time. The past 2 weeks have been very cold at night and in the morning, allowing farm workers to only get 4-5 hours per day to harvest. Plus, the vegetables just won’t grow with this cold weather. As a result, markets continue to be active on just about all the major vegetable items. Lettuce broccoli, cauliflower, celery, and romaine are all pushed to the breaking point. And that is exactly what will happen as these prices continue. Retails will be changed and business will slow. The good news is that temperatures are slowly warming up.
Trucks  are still plentiful, but rates seem to have bottomed out for now. Fuel costs have bottomed out, as well, so this may be the “low” for trucks for this Winter.
Long range weather in the desert growing regions show gradual warming temperatures, plus not as cold at night. This is certainly good news, so the epidermal peel and other effects from freeze damage should be minimal.

LETTUCE–all the reports we are getting from the shippers is that they are WAY ahead of schedule with their fields. As a result of that, they expect LIGHT supplies of lettuce the entire month of January, and into early February. So, even though the lettuce market is high, we aren’t sure if prices will come down any time soon. Quality is okay for the most part, although expect to see epidermal peel and blister mostly on the outer wrapper leaves.

BROCCOLI–light supplies, especially on crowns. The market on bunch 14s, 18s, and crowns continue very active, but we could see easing by the end of this week. With retail prices set high, business should slow down and prices could come off.

CAULIFLOWER–VERY active market here. Light supplies and empty pipelines will keep this market strong. Still, we don’t encourage you to buy heavy. Once the market starts to come off, it won’t be 50 cents or a dollar at a time! You don’t want to be stuck with high priced cauliflower.

LEAF ITEMS–quite a wide range in prices on red, green, and romaine. In fact, there is as much as a $4-5.00 SPREAD depending upon the area and label on any one of these items. We are seeing epidermal peel and blister on the back sides of leaf, especially romaine. Fortunately, the freeze hasn’t gone too deep, so it is mostly on the outer leaves and the workers are doing a pretty good job of trimming the problem leaves off.

CELERY–prices keep going up. Shippers keep testing the waters every day to see when the buyers say “THA’TS ENOUGH!” There is quite a price spread between the larger size 24s and 30s, and the smaller size 36s. So, if you can switch sizes, and we recommend that if you can, that would give you more stalks/carton to sell. And, truthfully, when the markets get as strong as they are right now, there isn’t much of a difference between a 30 and 36 size. Shippers are also adding $1.50-2.00/box to transfer product from Oxnard to the desert areas to load with the mixers, so that makes thing even MORE expensive.

STRAWBERRIES–just when prices finally started to ease off in California and Mexico, cold, wet weather in Florida is looming. We’ll see how the next 2-3 days shake out, but demand is already picking up out West for our fruit. Quality ranges from excellent to outstanding. Hard, big, full color is what we are seeing.

We are finally seeing the cold temperatures in the desert growing areas that we DREAD every year. Normally we see these temperatures in December, where we sweat out the entire month. As we get in to the middle to the end of January, those “treats” become less likely. But, this is early January, and there here. Cold temperatures today and for the next few days are forecasted and will cause problems. Already today, we are seeing lettuce ice until 11 am, which means the workers can’t even get in to the fields until then. That shortens the work day, growing time, and shortens the supplies. As a result, “false markets” are created. Shippers can ask for more money if they don’t have the supplies. And they are.
Long range weather shows after the next few cold days in the growing regions of Coachella Valley, Imperial Valley, and Yuma, there will be gradual warming, and no rain in sight.
Trucks more plentiful than the past 2 holiday weeks, and rates are drifting back down, after these past 2 weeks of run ups.

LETTUCE–short supplies caused by the cold spell in the desert. Shippers are pushing the markets upward because of this, and will continue to do so. We are watching the quality, because there will probably be some blister and epidermal peel mainly on the outside wrapper leaves. We don’t know how “deep” the effects will be.

BROCCOLI–cold temps slowing down the supply chain and pushing the markets, especially on crowns. We don’t anticipate the broccoli market going up too high, but up $2-4.00 over last week could happen. Cold weather causing some purple cast.

CAULIFLOWER–basically supplies have come to a standstill because of the cold weather. Demand isn’t necessarily active, but with little product available, the shippers don’t need good demand to push their prices.

LEAF ITEMS–again, cold weather slowing production and growth. Prices aren’t going crazy, like other items, but enough to get red and green leaf off the floor. Watch romaine. Cold weather can really effect things there. Romaine is VERY susceptible to blister and peel, and we are watching for that.

CELERY–shippers keep pushing the market, and buyers keep buying. It has got to stop sometime, but we have seen over the recent years the market getting to $30 fob, and staying there.

STRAWBERRIES–better supplies in Florida putting California to a more stable situation. Good quality out here. Hard, sweet fruit that will hold up.

ASPARAGUS–all the shippers are talking about better supplies LATE in the week. For now though, things are VERY tight due to the cold weather slowing growth and production to a crawl.

Even though Winter doesn’t officially start until Dec. 21st,  it is DEFINITELY here. Currently, rain and cold temperatures are covering the state of California, and in to Arizona. With these situations come their potentially massive share of problems. Slow growth, slow harvesting, trouble getting in and out of the fields with trucks, quality issues, with wet product, muddy product and cartons, mechanical damage in the form of broken midribs and discolored product resulting from the broken product. As you can see, LOTS of problems occur when the weather is not favorable. And probably most importantly, the shippers take advantage of this by raising their markets at will, with their “prices subject to change” policy.
Long range weather shows off and on chances of rain throughout California and Arizona for the next 10 days, and COLD temperatures at night. We will be watching for freezing conditions and will report any, if and when it happens.
As we head in to the last week for Christmas business, there are plenty of trucks available. Next week will be interesting, with truckers trying to get home for the holidays.

LETTUCE–rainin  the the lettuce country causing slow growth, slow production, and unsettled market conditions. We expect shippers to try to bump the market, although after Wednesday there won’t be much business, especially to East coast receivers, so we aren’t sure how the market will play out this week.

BROCCOLI–a bit stronger here, with wet conditions making harvesting a difficult task. With slower production, supplies are lighter, and shippers are pushing the market on bunch 14s, 18s, and crowns. Again, we aren’t sure how much prices will rise, but we don’t expect much of a run. There IS still quite a bit of broccoli from Salinas to Yuma.

CAULIFLOWER–as we reported last week, the market has spiked up considerably over last week’s prices. In fact, they are nearly double from this time last week. Cold weather slowing growth and production is the main reason for the bump in prices. Retail prices will be changed tomorrow with most retailers, so the market “should” stall out after that.

LEAF ITEMS–slightly stronger with green leaf and romaine, steady on red and boston. But, again, just how much higher the market goes up depends heavily upon how cold it gets in the desert, and how much rain they get. Still up in the air at this time.

CELERY–Good action for Christmas, and heavy rains in the Oxnard area, where most of the supplies are coming from now, have allowed the shippers to raise their prices $4-5.00/box over this time last week. Wet fields can REALLY hamper harvest and production in celery fields. Sometimes they have to send BIG bulldozers out into the fields to get the trailers loaded with celery out. This can be a  REAL time consuming and cumbersome process.

STRAWBERRIES–VERY few berries around! Everyone is waiting for Florida to pick up their volume. The weather looks favorable there for the next 10 days, so that should really help. As for now, though, with the rain in California and Mexico, there are hardly ANY berries available.

Everyone is now in the process of loading their Thanksgiving needs, but NO one is sure just how business will be. Feelings range from “uneasy optimism” to “downright depression”. One thing is for sure, and that is ALL other sectors of our economy, from cars to computers, from department stores to toys are not feeling too good about their upcoming holiday business. For now, though, Thanksgiving is on every produce person’s mind, and most are going ahead with “guarded pessimism”.
Trucks, as expected, are as tight as they have been since the Summer peak, and truckers are pushing for higher rates. $300-500 more than the latest market rates to the East coast. Expect trucks to be snug for most of this week, then the faucet shuts off.
Long range weather shows NO rain in Central and Southern California, which is fine for loading for the holiday business. After that, we NEED the precipitation.

LETTUCE–Huron has about another week or so, then we move to the desert. Actually, some shippers have already started there, but for loading purposes, we are trying to stay in Huron until more items are available. Quality in the desert is a bit rough anyway, right now. Just starting out, it usually is.

BROCCOLI–demand is just so-so right now. This is unusual for the Thanksgiving push. Shippers are normally sold out going in to this busiest time of the season, and demand is only fair. This is definitely a negative sign. Supplies still coming out of Salinas, Santa Maria, Oxnard, and the San Joaquin Valley.

CAULIFLOWER–lighter supplies throughout the industry, but demand is only fair. This will keep the market from going too crazy during this week. Again, we should be seeing more business with cauliflower right now, and we aren’t.

LEAF ITEMS–romaine and green leaf are a bit tight, red and boston steady. Supplies of romaine and green leaf are tight because of the pressure from the salad companies. Also, Salinas is starting to wind down their season, and the desert isn’t doing much right now. But, after Thanksgiving, the desert should be get going.

CELERY–we are smack in the middle of the Thanksgiving push. After Wednesday, though, the East coast will be done shipping and just the Midwest and West coast will be pulling supplies. This hasn’t been much of a Thanksgiving for celery, and this trend has continued for several years now. Anyone ever heard of Stove Top dressing?

STRAWBERRIES–Watsonville and Salinas are just about done, although with the market and with the unusually warm November we are having, supplies continue to trickle in. Oxnard and Santa Maria, as well as McAllen, Texas are where Driscoll is currently loading, and they are pro rating orders every day, as much as 50-75%. They are also raising their price daily, hoping to discourage buyers.

There are signs that business is starting to pick up. As the Eastern deals wind down, we are seeing increased interest on items such as lettuce, bunch broccoli, broccoli crowns, cauliflower, celery, and other items. It will be another 2 weeks or so before all of the Eastern deals finish, but things ARE picking up out West. Now all we need is for SUPPLIES to increase to cover the increase in business.
Long range weather shows our “Indian” Summer kicking in, with warmer days for the next 5-7 days, but night are certainly getting cooler. No rain in sight, and we probably shouldn’t get any until the first to middle of November.
Plenty of trucks, and with the continuing drop in oil prices reflecting in lower gas and diesel prices, rates are dropping. This definitely helps with delivered prices.

LETTUCE–the market has dropped of $2-3.00 from last week, but it could be short lived. As business and demand picks up for Salinas product, prices may firm back up. Retails are set pretty high, so the shippers may not want to push their prices too high. Note that we have about another week, or so,  left in Salinas, and then we will switch to Huron. In fact, some shippers say they are starting as early as this Thursday. Some shippers may not have any overlap, others say they will.  Overall, we should be able to get supplies out of either area for another 2 weeks. Quality will be “suspect” out of both areas. Either old, tired lettuce in Salinas, or small, light weight, product with defects coming out of Huron.

BROCCOLI–firm market. We are certainly starting to see customers that had previously been loading out of the East coast, switch to Salinas. This increase in demand gets the shippers fired up to push their prices.

CAULIFLOWER–as we expected, lighter supplies and increased demand have allowed Salinas shippers to raise their prices. In fact, we expect them to double their market by mid week over last week. This is all reflective of increased demand from receivers that had been buying from the East coast. Also, supplies out West are fairly light.

LEAF ITEMS–not much change here. Romaine, red, green, and boston lettuces are all about steady from last week. Unlike iceberg lettuce, we should have supplies in Salinas of ALL leaf items well into November.

CELERY–shippers inching up their prices. Demand is only fair for all celery, so we don’t see prices going up too high for another 2-3 weeks. By then, Thanksgiving business will be upon us.

STRAWBERRIES–supplies were REALLY hurt last week after the unexpected rain we had the weekend of Oct. 4-5. Most shippers were stripping their vines to get rid of the rain effected product, so we are just now getting back to normal. Still, Driscoll is, and will be, pro rating their supplies all this week. Also, they have bumped their prices up $2-4.00/box over last week. Today, for instance, they pro rated orders by 50% and more. Overall quality is still just BARELY FAIR. Its just that time of year.

Even though weather across the country is still in the “Summer mode”, you can start to feel a bit of Fall in the air. If for no other reason, the days continue to get shorter, and the nights longer. There contnues to be a lot of local product on the markets and in the stores, and that should continue another 3 weeks or so, or until the first frost hits. Also, stores are ALREADY displaying Halloween merchandise! Christmas must not be far away.
Long range weather in the growing areas of California show continue mild, warm days, but cooler nights. No rain in sight.
Plenty of trucks and rates are steady. But, now with climbing fuel costs because of hurricane Ike, we might see rates climb a bit.

LETTUCE–still light supplies and strong market. Retails have changed to reflect the $25 price tag for a box of lettuce on the East coast, so we should see business slow down. We don’t anticipate shippers trying to raise their prices much this week, figuring they are happy with the current market. Then again, high prices haven’t stopped them before from trying to raise even higher.

BROCCOLI–still a lot of East coast product that is supplying much of the East, so demand for California broccoli is only fair, at best.

CAULIFLOWER–plenty of local product keeping the market out here flat. Quality is mostly good, although some of the fields are starting to show age, so we are sticking with shippers that are staying on top of their fields.

LEAF ITEMS–still a demand exceeds supply on romaine and green leaf, fair demand for red and boston. Both romaine and green are active because of the salad plants desperate for supplies. This certainly effects the carton market, which takes a back seat to salads. Not sure how much longer this will last, but certainly this week. Prices seem to have peaked out for romaine and green leaf, for the time being.

CELERY–no change here. Better supplies and deals on the larger sizes, while 36s, 48s, and hearts are still less abundant, and higher in price.

STRAWBERRIES–still strong demand and firm pricing for Driscoll label, and they continue to pro rate orders. Quality is the main culprit of this because they are throwing away 25-50% of what is out in the fields. Quality will continue to be WEAK, so move them in and out QUICKLY.

Many of the fruit and vegetable markets in California are very active and shippers are pushing prices, in spite of continued high freight costs. Cauliflower, broccoli, romaine, strawberries, and several assorted mixed items are all going up in price. At the same time, business is nothing to write home about. The relentless rains in Maine and other Eastern growing areas are certainly hurting their production, and that has a lot to do with the pressure being put on California product. Normally this time of year, growers in California plant light because of local gardens and growing deals.
Trucks are plentiful to all areas of the country, and we are seeing an “ever so slight” drop in rates. Still, rates continue to be about $1000-2000 MORE than normal for this time of year.
Long range weather forecast for Salinas growing regions for the next 10 days show dry, mild, normal temperatures for this time of year and no rain. The San Joaquin Valley fruit country also show hot, normal weather for the next 10 day.

LETTUCE–with rain in Canada and other Eastern growing areas, demand is stronger for head lettuce, and markets picking up. Not much, with only up a dollar or so, but we could see shippers try to bump for higher prices as this week goes. Overall quality is pretty decent.

BROCCOLI–even this item is picking up. Maine growing areas have been getting hammered with rain the past few weeks, and look for more all of this week. Shippers in Salinas and Santa Maria see this, and are bumping their prices today, and will probably look for more as this week goes.

CAULIFLOWER–like broccoli, stronger demand and higher prices today because of local deals getting hurt. Still, LOTS of local cauliflower and jacket flower being advertised on the East coast, so we aren’t sure if the higher prices out West will be able to sustain their momentum.

LEAF ITEMS–romaine still a demand exceeds supply situation. Supplies really got hurt the past few weeks with the heat spell. A LOT of romaine got left behind, so we are in a gap right now. Red and green leaf are in a better situation, although those markets are up, too. Not like romaine, where prices are nearly double the red and green market.

CELERY–no change. The “deals” are on the larger size 18s and 24s, with continued light supplies and stronger market on 36s and 48s. Michigan still going strong.

STRAWBERRIES–even a WORSE situation than last week! For instance, today, Driscoll is pro rating orders 75-90%! They, along with other shippers, anticipate this supply gap for another 2 weeks, or so. Demand is, of course, not like the Spring, but steady for this time of year. There is PLENTY of other fruit items to place on the shelves, but the food service and steady chain demand for berries is keeping the pressure on.  Basically, we are just trying to get our orders covered!

It is becoming increasingly more difficult to find fruit and vegetable items to run for ads. This problem can be attributed to one reason: FREIGHT. While many of the fob prices are reasonable, and often downright cheap, the freight cost per package continues to put them at a less-than-bargain price. For instance, you may have a lettuce price at $10.00/box fob, which isn’t bad, but then, for East Coast shipments, you have to put a freight cost of $8.00-9.00 per box, plus store markups, and your retail is anything but a bargain price. So, what are consumers doing? We assume they are buying bag salads, canned beans, and frozen broccoli. The GOOD news is that freight rates have peaked for the year. In fact, we are paying several hundred dollars less than we were 2 weeks ago. The BAD news is that diesel costs are still sky high, and even looking to go higher, so we probably won’t see rates come down a whole lot as we approach the Fall. We feel we will still be paying $1500-2000 a load more than “normal” as we get into the Fall.
Our 10 day weather forecast in Salinas shows more of a cooling trend, putting things back to normal after last weeks warming trend. San Joaquin Valley districts, where the fruits are coming from, continue normal, which put them at 100 degrees for highs.
Trucks available to all areas of the country at lower rates than 2 weeks ago, which were the peak for the year. Still, $7000-7500 to the East coast is the range.

LETTUCE–fairly light supplies in Salinas area, and shippers would like to see their markets go up for that reason. We don’t see business very brisk for lettuce, and that is keeping demand down and prices steady.

BROCCOLI–plenty of supplies on 14s, 18s, and crowns, and no change in the market, which is down. Quality is nice on all broccoli.

CAULIFLOWER–prices have been too high for the demand. Shippers are desperately trying to hold on to their markets, but we just don’t see it. Expect prices to slip on 12s and 9s as the week goes.

LEAF ITEMS–after the heat spell that knocked a lot of the supplies of red, green, romaine, and boston, things are getting back to normal. Local farms across the country are going strong, and demand out West is slowing down. As a result, the markets are starting to back off on all leaf items.

CELERY–this item continues to baffle us. With the high freight costs for a box of celery, we thought the fob prices would hit the floor. Not so. Prices are still up there, keeping the prices upwards of $30 for a box of celery on the East Coast. We probably won’t see lower prices until Michigan starts.

STRAWBERRIES–demand has really backed off for strawberries. Even Driscoll is looking for business! We don’t know if their salespeople even know HOW to sell! They have just been taking orders and prorating for the past year, it seems. Our weather looks to be cooler for the next 10 days, so the mention of Driscoll LOOKING for business could be short lived.

Never before have we seen such a significant increase in fuel costs, and the entire economy is affected.  From pencils to peppers, everything needs to be transported by truck, causing retail prices to explode.  Produce prices are greatly affected by this economical disaster, with freight lines quoting as high as 10,000 dollars for California to Northeast runs.  Produce companies are experiencing huge overhead and taking losses during what should be the most profitable time of year.  Long range weather is showing a slight warming trend toward the end of this week and temperatures peaking into the 80s by this weekend.   Temperatures should then start to cool back down after the weekend and into next week.

LETTUCE — Generally this time of year sees declining lettuce sales due to the fact that more people are planning fruit salads.  This year is showing significant declines compared to last year thanks to expensive freight rates.  Product is coming out of Salinas and Santa Maria areas.  Weights are improving and quality is some of the best we have seen all year,

BROCCOLI — Good quality all around. Weather has been cool and mild for the majority of the growing period.  There have been some warmer days, but not hot enough to affect product.  There are plenty of deals out there.

CAULIFLOWER — Some discoloration issues, yellowing from sunburn and some molding but very minimal.  Shippers are able to sort through the product and preemptively solve any problems that may come up.  Some spotting has been detected, but not enough to affect overall appearance.

LEAF ITEMS — Very few problems here as well.  Weather has been very mild.  Leaf is very susceptible to hot weather, but our hot days have been minimal.  As the days warm up over the next week, we will be on the watch for problems that may arise.

CELERY –Salinas has officially started as Oxnard production continues.  Oxnard quality has been good, however, the beginning of Salinas is seeing some pale color and short stalks, but product is improving daily, as are numbers.  Seed stem is only about 3 inches, while 10 inches is allowed.    Delivered prices remain high and continue to climb as freight rates skyrocket.

STRAWBERRIES — Demand is high for berries as summer begins.  There have been some supply issues during transition from Oxnard to Salinas and Santa Maria, but Salinas production has come up with the extra fruit.  Non Driscoll shippers are looking for business and are significantly less expensive.  Quality is good; weather has been nice and cool, producing solid, colorful fruit.   Freight is cheaper with berries compared to lettuce or celery because more berries can fit onto a pallet.  It is because of this, high freight rates have actually helped increase demand for strawberries.

The next 5 days or so will be the FIRST extended warm spell we have had this year in California. What does this mean? For starters, it should bring on more strawberries, where up to this point, have been slowed for weeks by below normal temperatures. Also, this should help with tree fruit, melons, and grapes that need a shot in the arm for Memorial Day and beyond. This warming trend is certainly welcome overall, since we have had a record cold Spring.
No change in the truck picture. Even thought there are plenty of trucks, the continual rising fuel costs has got a death grip on the trucking industry, as well as our economy. As we have said in previous bulletins, we are currently paying as high as $2000 MORE for trucks to the East coast , than this time last year, and we haven’t even started the Summer fruit season. While we could see record rates, we ALSO see more trucks and truckers getting into the business for the Summer. Hey, if there is money to be made, more people will get in the business!
Long  range weather shows record HIGH temperatures coming into California the next 5 days, then cooling off to more normal.

LETTUCE–shippers are trying to get this market up, but aren’t having much luck. Not much interest in lettuce right now. Most stores have been advertising lettuce non stop, and are looking forward to “fruit” salads, which are just getting started.

BROCCOLI–this market has  picked up a bit after hitting the bottom the past 2 weeks.  Still, there are shippers looking for business this week, and we don’t think prices will go up too much more than where they are now. Quality is nice on 14s, 18s, and crowns.

CAULIFLOWER–the cooler weather we had last week slowed down growth and production and allowed the shippers to push their prices upward. We are now getting strange calls from some shippers who are looking for business, so we could see a WIDE range in price by this weekend, depending upon the label. We could see as much as a $5.00/box SPREAD in price on 12 size.

LEAF ITEMS–there is PLENTY of red, green, and romaine in either Santa Maria or Salinas. Prices continue to be flat and we don’t see any change this week.

CELERY–BIG problems out here with celery. Oxnard and Santa Maria, which are basically the only 2 areas going, are battling seed stem. We are hearing as much as 50% crop loss. Even the celery that IS being packed is showing seeders. The shippers are QUOTING their product with seed stem, so EXPECT IT. It doesn’t deter from the quality, just makes it unattractive. Celery is going to be a battle for the next 4-6 weeks, or at least until Salinas gets started in early July. With the high freight rates, $35-40 on the East coast is going to be the norm.

STRAWBERRIES–supplies have been a problem for the past month or so because of the cold weather we have had. But, the warming trend expected the next 5 days or so has GOT to help bring on supplies. Driscoll continues to pro rate 50% and higher on their supplies, but this welcomed warming trend should help even them.