PRODUCE TRENDS

As we start winding down another season, business appears  to be steady with ample supplies of most produce items. But historically  demand starts to rise sharply at the end of October while supplies concentrate on the  West Coast. If growers budget enough volume  and Mother Nature  cooperates  markets  generally stabilize after an initial boost  but if weather turns  extreme or even moderately above or below normal  supplies can be  affected causing extreme jumps in the market and extending into the Holiday season. A few shippers are claiming minimally reduced acreage for the upcoming Winter season and the  Farmers Almanac is predicting wetter than normal West Coast and colder than normal East Coast  expect a  few turbulent markets ahead.

Weather continues to fluctuate around the country. All of California including the Coast is expected to have a hot offshore flow this week raising temps well above normal  before returning to normal for next week . Long term weather shows a significant drop in temperatures by the 26th of  October through the first few days of November. Coming off a cold weekend around the rest of the country , temps return to normal (although “norms” are dropping a couple degrees per day) until significant cooling returns  November 1st.

Truck availability remains good but rates are stubbornly holding steady. There continues to be  heavy solicitation for business which will keep pressure on rates  to go lower eventually. As always  advance notice will give you the advantage of best rates.

LETTUCE-  Transition to the Central Valley will start this week with some  lettuce shippers having supplies  in both regions .There are a few shippers  who do not have a Central Valley operation and choose to stretch their Salinas Valley and Yuma districts. Early reports  from Huron show irregular size and some  quality issues due to overspray and/or tomato virus. Neither is  uncommon for the initial Central Valley lettuce crop. Best quality for this week will be  from  Salinas  but with warm weather expected throughout the week conditions  could change rapidly. The  market has gradually firmed up as shippers  are apprehensive about their transitional supplies. With a wide range in quality from both districts  loading fresh lettuce is top priority.   

BROCCOLI- After cool weather last week supplies have lightened and most shippers  are firming prices especially on crowns .  Warm weather should help promote growth and the market should stabilize by the end of the week. Occasional volume  deals  are still available on bunch.  Quality is  mostly very good  with occasional pin rot. Central Valley production should start next week which will also help contain pricing.  

CAULIFLOWER- Much like broccoli last weeks  cooler weather should help  slow production temporarily but inventories are high and warmer weather will put further pressure on the  market to remain weak. Volume deals are currently available. Quality remains good.  If enough “Hot” Deals are struck the  market may have a chance to rebound next week as  there are no new districts to support  and local homegrown production is nearing an end.

LEAF ITEMS- Romaine  and  Romaine Hearts continue to  be  weak with lower pricing. Demand on green and  redleaf  is also flat. Wide range in quality . Similar to lettuce but to a lesser extent, a few shippers will  transition their mix lettuce program to the  Central  Valley by next week.  Similar wide ranging quality issues exist in the Romaine as in Iceberg lettuce. Homegrown supplies  are getting weaker by the  day so increased demand is  expected soon than later . 

CELERY- Market continues to be stable with occasional volume offerings .Michigan  is winding down production which will be  offset by start up production in Oxnard.  Many wholesalers amp; retailers have already contracted their Holiday volume which will help shippers firm their pricing in a couple weeks.

ASPARAGUS– Production from Mexico continues to be limited and demand has stayed strong. Quality continues to improve weekly. Supplies look to be on track for Holiday promotions.

GREEN ONION- Production has leveled off  and demand continues to be weak especially on small size Green Onions. Pricing on medium and large sizes are slightly higher.

BRUSSELS SPROUTS-  Increased supplies and lighter demand has  prices headed lower. Although similar to Celery, demand for November promotions will likely prop the market back up  by early November. Take advantage of good values  while supplies last.

STRAWBERRIES- Production and quality continue to wind down  in  Salinas / Watsonville and picking up in Oxnard  and eventually Mexico via McAllen. With the newer districts increased supplies of QUALITY fruit the top end market should stabilize. There continues to be discounts  for West Coast quality fruit . Raspberry prices are slightly higher for the best quality labels. Limited production  continues with strong demand on Blackberries. New districts will also help supplies on Raspberry and  Blackberries.

GRAPES- The market on Green and  Red grapes is stronger as most shippers continue transitioning into their late season varieties. Quality continues to be excellent  due to the  ideal weather throughout the  Summer season in the  Central Valley.

NO SHADOW

Phil says an early Spring is on it’s way. The good news is we’re seeing some markets adjusting but quality will continue to be a concern on most veg items especially leafy veg. Some shippers are quoting leaf acceptance final even with decay on arrival. As long as there is a strong shortages these terms will have teeth but supplies should start to increase by the end of this week although quality might not improve overnight pricing and terms will be increasingly flexible. We suggest buy minimum quantities until quality improves.



Weather forecast for the California Coast (norms:64/40-46) calls for slightly below normal next week and falling below normal for much of the month especially the lowsLight precipitation expected mid week but otherwise fairly dry. The desert and Central Mexico  (norms:72-74/40-46lo) are expected to be dry and above normal early this week before dropping below normal through the middle of the month especially the lows. 
Central Florida forecast normal (norm:72/50lo) for the forecast window. 

Transportation continues to be steady with some midweek discounts. Plan ahead for best value and service.


****WARNING**** Extended below freezing temperatures have resulted in blister, peel and discoloration issues on most vegetable commodities along with occasional decay.  


CELERY- The celery market continues to see strength as good demand and reduced acreage combine to keep market active. Quality has been showing signs of frost damage of late and will continue to have varying degrees of issues depending on production location. Limited quantities being grown in the desert continue to result in a wide ranging market due to the fact most celery is transferred to Yuma for consolidation. The best values will continue to come from Oxnard.

STRAWBERRIESProduction has peaked from Mexico and Florida . Southern Californian Coast production was stalled with last weeks showers causing an uptick in pricing which also affected pricing in Florida.  With showers still possible this week in California  and production peaked in Florida and Texas combined with Valentines promotions  the market is strengthening daily.  Quality from Florida has been good but extended warm days have softened the fruit slightly. California was  improving daily  before last weekends rain temporary setback. Stems will be available but limited mainly out of California with sizing limiting Florida and Mexico from producing stems.  Raspberry production  has stalled with most production out West and the market is very active on limited supply. Blackberries quality has fallen off lately causing some poor arrivals although quality should improve next week.

LEAF LETTUCE-  Quality continues to suffer and with recent rains quality has further declined especially Romaine. Some shippers are even quoting acceptance final but that may only last for another week as buyers , especially retailers and high end food service can’t use products that breakdown rapidly.   The market looks to to active early this week but likely will start easing  on colors although  Romaine and Hearts  may take a few more days.

BRUSSELS SPROUT- Production from Mexico has been slow since the cold weather the last 3 weeks.  Supplies should slowly rebound over the next couple weeks and the market should stabilize. Quality has been good out of Mexico.

GREEN ONIONS-  Production continues to be slowed by labor and weather . The market has been relatively steady. Anticipated increase in production is still expected by weeks end. Look for the market to ease by next week. .

CARROTS- Carrot production has been steady.  The market is steady locally but an influx in bulk supplies continue from Mexico keeping pressure on bulk packs. Demand at retail may start to drop off as many of the promotional events have past. 


CITRUS- Navel production continues with good volume and improving flavor and sizing profiles. Recent freezes have had minimal impact on either quality or production only to increase choice offerings.  Steady increase in production will translate to better values as the season progresses.

CAULIFLOWER- The market corrected rapidly last week as supplies increased and demand fell. Look for continued softness in the market this week before supplies stabilize next week. Quality has been mostly good with some epidermal peel on jacket.

BROCCOLI- Quality along the coast is improving  while quality in the desert and Mexico continue to be ok- good. With the improved but still fair quality comes an increase in supply. The market looks to be adjusting this week with a wide range in quotes depending on quality and location.  You’ll continue to find steeper discounts on Mexican Crowns and Coastal broccoli but beware of wide ranging quality.

LETTUCE- Production should start to increase from the desert  but Quality will  continue to be the overriding concern for the next 3 plus weeks.  Shippers will try to strip down most affected leaves but that will increase mechanical issues and create further discoloration and breakdown. If lettuce stops moving at retail due to quality rejections then the market will slide significantly otherwise it will continue to gradually ease down as temperatures warm.

ASPARAGUS- Production from Mexico is finally starting to increase although  Peru’s volume has continued to drop. There are a significant amount of ad promotions that will stabilize the market in the short term but look for increased volume and lower pricing after Valentines Day. 28 # packs will also become available. An early Easter Holiday will get retailers to promote heavily so get in on advanced deals while available.

GRAPES- Limited shipments from Chile and Peru have kept the market strong especially the Red varietals. Shipments are expected to increase this week with better sizing especially  the Reds . Red globe and most Green varietals with the best quality continues to come from Chile.

A Little Bit of Everything

This past week brought a little of everything throughout the week .  A little rain, sun and wind.  Heading into October most forecast call for near normal weather with cooler nighttime temperatures but warm daytime temps. California Coast norms 74/50-52 The Inland Valley norms 86/58 and The Desert  norms 96/60. 

Transportation rates dipped slightly this past week . Overall supply seems to be strong especially for singles. Increased regulations will continue to put pressure on drivers logs and likely delay even the fastest trucks moving forward. Teams will be in high demand.  Plan ahead for best value and service.

LETTUCE- . Quality has  improved as well as supplies. Still there are some quality concerns with  Mildew, Fringe burn and seeders.  The lettuce quality will peak next week and won’t make a substantial improvement until the transition to the new growing areas later in the month.  The market is adjusting to reflect the overall lack of demand at the higher pricing  that lower yields  and contracted pricing artificially created.  With only a couple weeks in the Coastal production area  the market may improve depending on the new growing areas in the Central Valley and the desert.

LEAF LETTUCE-  Romaine production continues to be sufficient  with continued  ranging defects from  fringe and tipburn along with mildew and seeders although there is still some nice quality available. Green and Red leaf supplies have increased but with a wide range in quality as well. 

ASPARAGUSProduction continues to increase from Coastal Mexico  andPeru.  The market should continue to ease as supplies increase. 

CARROTS jeu flash poker
 Carrot production has been steady but with slightly smaller sizing.  Jumbos have been in short supply but have shown improvement. 

BROCCOLISalinas and Santa Maria production continues with light to moderate supplies . The market has been extremely tight with
   cooler nightime  temps and shorter days which immediately followed a period of warm weather  which created a significant slow down in production. Increased  production from Mexico  and slightly warmer days should help supplies and ease the market slightly.   Brown bead and hollow stem are still a concern but quality seems to be improving daily.  The crown market has been unusually active with strong demand from export and processors. 

CAULIFLOWER-  Lighter production  due to a preceding overly heavy production period  combined with an active broccoli market led to a rise in the Cauliflower market. Supplies should even out and the market should stabilize heading into October.  Quality has been mostly good with some light cream coloring.

CELERY-   The market has been steady with improved sizing and yields.  Freight rates continue to keep demand from peaking but as Michigan production  slows the market will strengthen.   


BELL PEPPERSProduction  in the California  Central Valley and Coastal Valleys   continue to produce excellent quality.  The market has eased with Green especially smaller sizes. Red and Yellows have started with bettervolume and the market has eased slightly but still remains active with many local growing areas in the Midwest and East still having issues. 

STRAWBERRIES- Production is starting to slow down after a strong Summer season. Fall crop acreage is  minimal from Santa Maria and Oxnard is still a few weeks away from seeing any additional volume. There is a wide range in quality with many berries being shipped close to market especially after this past weeks showers further soften mature fruit.  The market will continue to be strong for several more weeks . Quality on the new crop out of Santa Maria is showing improvement over the current Summer plantings which are winding down.   Raspberries supplies have  slowed and the market has tightened as well   

Mid Summer

7/16/14

We are now well into the summer months with Fourth of July behind us, and no significant weekends or holidays in the near future.  Many Americans will be on vacation, buying less at home, and grocery sales tend to slow during this period.   Trucks are readily available, although staying busy with melon, tree fruit and berry loads.  Fuel prices are expected to level out and decrease over the next few weeks.  Rates have remained steady but could be cheaper by early next week with less demand. West coast weather remains pleasant and mild and hot inland valley temps over the next 10 days. Ideal growing weather for coastal vegetables and fruit, expect nice quality overall from the west.

LETTUCE – Supply is improving as demand settles and more product is available country wide with cheaper freight costs. Still a fairly wide gap in pricing, although the trend has been downward and buyers are waiting it out.  For now the market seems to have settled with most shippers, with more following suit in the days ahead.  Quality is nice, some pink ribbing and brown butt issues but very minimal.  Could see aging issues as we expect some inventory holdover in the coming days.

BROCCOLI – This market is at the floor level, particularly on crowns. Eastern and Midwest product is flooding terminals with cheap product and demand remains sluggish.  Mild weather will continue on the west, bringing on high quality product.

CAULIFLOWER – Prices continue to settle, more product is coming out of fields and some shippers are looking for load volume sales.  There is still a gap in pricing between shippers and this market has yet to find coming ground. The trend has been downward but cauliflower market have proven to be significantly more volatile than other commodities.  Shippers may have load volume one week and sold out the next. Plenty of deals available but we suggest sticking to normal volumes.

LEAF – romaine is one of the few strong market items.  Numbers are light and demand has been high.  This market will most likely reach its peak within the next few days, high retails will move demand back to lettuce and alternate leaf items as price conscious buyers hit the stores.

CELERY – The past few days have breathed new life into the celery market.  Pricing has increased $4-$5 in the past few days. Supply gaps are mainly to blame for this, and sizing discrepancies have fueled the increase.  Large sized product is more readily available, and very few smaller sizes have resulted in a wider range in pricing between 24s and 48s.  More product has been left in the fields to size up in hopes of better markets.  As markets improve we should see more small sizes available next week.  Pricing, although stronger, is not expected to get much higher into the weekend.

BERRIES –

Strawberries –Produce remains tight, demand is strong, although weaker than previous weeks.  Weather is mild, although humid nights could result in softer fruit and quality issues.  Sizing tends to be on the smaller side, mostly due to current varieties being used.  It is best to stick with better labels this time of year to minimize quality issues.

Raspberries –Very tight, market is increasing and quality is getting worse.  Low supply and marginal quality have resulted in heavy pro rates industry wide.

Blackberries – Similar issues with blacks, soft leaky fruit is common for this time of year. Market is strong with heavy pro rates.

PREPPING for the HOLIDAYS

Watching the weather around the  country , specifically in the  commercial growing  areas in the Northeast it appears Mother Nature and  Father Time  are giving them a weeks reprieve before Winter Frost sets in which will likely signal an end to the homegrown season. Demand for West Coast veg should start to increase. Many shippers have been offering promotional pricing but with Thanksgiving promotional pulls  starting as early as  November 2nd and usually running for an extended period most shippers  have started  taking a  cautious  approach to additional  promotions for the month of November. A few veg shippers claim they are running ahead of schedule currently which will eventually lead  to availability issues  during the  transition to the desert (11/12-16) but most are confident they will have budgeted volume  through the majority of the Thanksgiving Holiday pull.

Weather in California  growing districts , especially the  Central  Coast  will be mostly unsettled  with few  showers in the north with below normal temps  until returning  to normal (72/48)  by the weekend continuing through the first week of November . Weather around the country has the opposite trend with above normal temps this  week  and dropping to below normal by next week with plenty of precipitation in most areas.

Truck availability remains good with rates  starting to edge down slightly. Fuel prices  are also predicted to go lower which will help rates even further.   As always  advance notice will give you the advantage of best rates and service.

LETTUCE-  Transition to the Central Valley continues with most shippers expected to have supplies in both locations throughout the week. There are a few shippers  who do not have a Central Valley operation and choose to stretch their Salinas Valley and Yuma districts. Lettuce from Huron shows irregular size and some  quality issues due to overspray and/or tomato virus and some seeder issues. None of which  is  uncommon for the Central Valley lettuce crop. Better stands and quality are anticipated for next week best, but still limited quality for this week will be  from  Salinas although rain will eventually have a negative impact on quality. The market has gradually firmed up as shippers are still apprehensive about their transitional supplies. Once supplies settle look for the market to ease back possibly by the weekend.  With a wide range in quality from both districts  loading fresh lettuce is top priority.   

BROCCOLI- Supplies of broccoli continue to readily available with crowns only slightly tighter than bunch. Production continues to be slightly ahead of budget adding to the current supply but may cause a tightening during transition.  Warmer weather is  expected later this  week  so  look for supplies to continue to be  strong. Volume  deals  will become  more accessible as the week goes on. Quality is  mostly good  with occasional pin rot due to recent rains. Central Valley production will start up by next week which will also help contain prices.   

CAULIFLOWER- Inventories continue to be higher than budgeted  which  allows  volume  deals to be  readily available . Quality remains good.   Most growers  continue to run ahead of schedule increasing the likelihood of tighter supplies  later next month. There are no new districts to support demand and local homegrown production is nearing an end .

LEAF ITEMS- Romaine  and  Romaine Hearts continue to  be  weak with low pricing. Demand on green and  redleaf is also flat. Wide range in quality . Similar to lettuce but to a lesser extent, a few shippers will  transition their mix lettuce program to the  Central  Valley this week and next.  Similar wide ranging quality issues exist in the Romaine as in Iceberg lettuce. Homegrown supplies  are getting weaker by the  day so increased demand is  expected sooner than later . 

CELERY- Market continues to be weaker with increased volume offerings. Michigan  is winding down production but Oxnard is ahead of schedule as is the current Salinas crop which will add to the oversupply situation. This will likely lead to possible shortages during the Thanksgiving demand but take advantage of deals  now and possibly get a more favorable ad price for the Holiday. Although many shippers have  locked in their Holiday volume which will eventually help firm prices in the  coming weeks.

ASPARAGUS– Production from Mexico continues to be  limited and demand has stayed strong. Quality continues to improve weekly.  Supplies look to be on track for Holiday promotions.

GREEN ONION- Production has leveled off  but demand continues to be weak especially on small size Green Onions. Pricing on medium and large sizes are slightly higher.  There is a  good  chance the  market reacts  upward with local supplies light and possible unsettled weather in Mexico affecting labor combined with better demand by the end of the month.

BRUSSELS SPROUTS-  Increased supplies and lighter demand has  prices continuing to  head lower. Although similar to Celery, demand for November promotions will likely prop the market  back up  by early November. Take advantage of good values  while supplies last.

STRAWBERRIES- Production and quality continue to wind down in Salinas /Watsonville  especially with rain and unsettled weather  scheduled through Wednesday. Oxnard will be the primary shipping region for eastern quality fruit. Mexico availability will also start to increase quality offerings. The market will continue to have a wide range of prices reflecting the quality gap. The market on top end quality will continue to be strong through the Holiday’s.  Supplies on Raspberry and  Blackberries primarily from Mexico will increase and eventually lead to some easing in the market. Production from  Florida is on schedule but is still more than a month away.

GRAPES- The transition into late season varieties has been slow. Color and sugar levels have been inconsistent. Supplies  look to be  inconsistent , especially  on  Reds and  Green.  Globes have had more consistent quality and offerings

Weekend Update

Quick update on weather and markets around the country for the weekend


Weather forecast for the California Coast (norms:64/42-46) calls for Fridayshowers and below normal continuing into next week and falling well below normal for much of the month especially the lowsThe desert and CentralMexico  (norms:74/40-46lo) are expected to be dry but cool this weekend and continuing to be well below nor
mal 
 through the end of the month especially the lows with potential frost warnings for the next 2 weeks
 Central Florida forecast slightly above normal (norm:74/52lo) for the forecast window. The Northeast is expected to get hit with ablizzard this weekend before returning to normal but still cold for the balance of the month. 

Transportation continues to be steady with some midweek discounts. Fuelprices are starting to climb which will eventually have aeffect on rates. Plan ahead for best value and service.


****WARNING**** Extended below freezing temperatures have resulted in blister, peel and discoloration issues on most vegetable commodities along with occasional decay.  


CELERY- The celery market continues to see strength as good demand and reduced acreage combine to keep market active. Quality has been showing signs of frost damage of late and will continue to have varying degrees of issues depending on production location. Limited quantities being grown in the desert continue to result in a wide ranging market due to the fact most celery is transferred to Yuma for consolidation. The best values will continue to come from Oxnard.

STRAWBERRIESProduction has peaked from Mexico and Florida . Southern Californian Coast production was starting to ramp up for Valentine Day commitments but recent showers may interrupt harvest for a few critical days. Hoping for dry weather next week but likely still below normal temps will keep production in check and market active. Stems continue to be very limited.

LEAF LETTUCE-  Quality continues to suffer from Blister, peel, discoloration and occasional decay. Some shippers are still quoting acceptance final on Romaine. The market has adjusted on the colors but Romaine products continue to be very tight. With further frost potential in the forecast continued quality issue will persist through the remainder of the desert deal and likely to extend into the Spring


CITRUS- Navel production continues with good volume and improving flavor and sizing profiles. Recent freezes have had minimal impact on either quality or production only to increase choice offerings.  Steady increase in production will translate to better values as the season progresses.

CAULIFLOWER- The market appears to have bottomed out.  Cooler weather forecast will slow production next week and the market will likely advance. Quality has been mostly good . Take advantage of  any deals available early next week

BROCCOLI- Quality along the coast is improving  while quality in the desert and Mexico continue to be ok- good. With the improved but still fair quality comes an increase in supply. The market looks to be bottoming out next week as additional production from California Central Valley will start back up. Cooler weather may have an effect on pricing but too many production areas will keep a lid on overall market  Wide ranging quality will make it necessary to watch quality depending on loading location.

LETTUCE- Production has increased but Quality will  continue to be the overriding concern for the next 3 plus weeks.  Shippers will try to strip down most affected leaves but that will increase mechanical issues and create further discoloration and breakdown. Lettuce demand has dropped with quality and East coast weather slowing sales. Cooler weather may slow production enough to have market rebound by the end of next week.

ASPARAGUS- Production from Mexico is finally starting to increase although  Peru’s volume has continued to drop. There are a significant amount of ad promotions that will stabilize the market in the short term but look for increased volume and lower pricing after Valentines Day. 28 pound packs will also become available unless the forecast of cooler weather extends into production areas in Central Mexico. An early Easter Holiday will get retailers to promote heavily so get in on advanced deals while available.

GRAPES- Limited shipments from Chile and Peru have kept the market strong especially the Red varietals. Shipments are  increasing this week with better sizing especially  the Reds . Red globe and most Green varietals with the best quality continues to come from Chile

_________________

Volatile Markets

Strong high pressure swept across northern CA into the Great Basin on Thu and Fri producing a dry and hot offshore flow event for the Central Coast.  Max temps  warm to the 80s to low 90s Fri, then 90s across the board on Sat and Sun while very low humidity levels  allow morning lows to dip into the mid-upper 30s in the colder inland valleys, mostly 40s to low 50s elsewhere.  Wind protected valleys  touch freezing this weekend.  On Mon, wind shift northwesterly resulting in a sharp cooling of afternoon highs.  Expect low-mid 80s inland by Mon, low-mid 70s along the shores.

MAX TEMPS:  Watsonville-Salinas:  Mid 70s Thu, warming to low-mid 90s by Sat, returning to mid-70s by Mon.  Santa Maria:  Mid 70s Thu, warming to low 90s by Sat, cooling to low 70s by Mon.  King City-Paso Robles:  Mid 70s to 80s Thu, warming to low-mid 90s Sat/Sun, cooling to low 80s by Mon.  Inland small valleys north :  Low 80s Thu, warming to mid-upper 90s Sat/Sun, cooling to upper 80s Mon.

OUTLOOK:  Max temps continue to cool Tue under moderate onshore winds thenpossible Thunderstorm along the coast on Wed  followed by  near normal thru Fri, Oct 9-11 under a dry, offshore regime.

Transportation rates dipped slightly this past week . Overall supply seems to be strong especially for singles. Increased regulations will continue to put pressure on drivers logs and likely delay even the fastest trucks moving forward. Teams will be in high demand.  Plan ahead for best value and service.

LETTUCE – Improved quality was short lived as lower yields and heavy contracted volume have rebounded the market to higher levels. Quality concerns with  Mildew, Fringe burn and seeders continue.  With only a couple weeks in the Coastal production area  the market will have little pressure to ease until the new growing areas in theCentral Valley start up in a couple weeks
LEAF LETTUCE-  Romaine production continues to be sufficient

but with the elevated iceberg market the Romaine market is poised to react especially with the eastern homegrown production starting to wind down . Continued defects range from  fringe and tipburn along with mildew and seeders although there is still some nice quality available. Green and Red leaf  supplies have increased but with a wide range inquality as well.

ASPARAGUS- Production continues to increase from Coastal Mexico  and Peru.  The market should continue to ease as supplies increase.

CARROTS-  Carrot production has been steady but with slightly smaller sizing.  Jumbos have been in short supply but have shown improvement.

BROCCOLI- Salinas and Santa Maria production continues with light to moderate supplies . The market has been extremely tight with   cooler nightime  temps and shorter days. Increased  production from Mexico  and slightly warmer days should help supplies but heavily contracted and reduced acreage has kept the market on a record pace.Brown bead and hollow stem are still a concern but quality seems to be improving.  The crown market has been unusually active with strong demand from export and processors.

CAULIFLOWER-  Lighter production  due to a preceding overly heavy production period  combined with an active broccoli market led to a rise in the Cauliflower market. Supplies should even out and the market should stabilize

machine a sous colombus

by the end of the week . Quality has been mostly good with some light cream coloring.

CELERY-   The market has been steady with improved sizing and yields.

Lower freight rates and slowing production fromMichiganwill put pressure on the market to go higher especially heading into the Thanksgiving contract proposal period.
BELL PEPPERS- Production  in the California  Central Valley andCoastalValleys   continue to produce excellent quality.

Demand has held steady as well as the market

with Greens . Red and Yellows have started with better volume and the market has eased slightly but still remains active with many local growing areas in theMidwestand East still having issues.

STRAWBERRIES- Production is starting to slow down

fromSalinas/ Watsonvilleafter a strong Summer season. Fall crop acreage fromSanta Maria is starting to increase andOxnardis still a few weeks away from seeing any additional volume. There is a wide range in quality with many berries being shipped close to market.If forecast precipitation comes in on Wednesday look for additional product to be diverted to freezer .  The market will continue to be strong for good fruit but will continue to ease for softer fruit. Raspberry amp; Blackberry supplies have  slowed and the market has tightened .

_________________

Tim  Tomasello

Mid Summer

7/29/14

We are now well into the summer months with Fourth of July behind us, and no significant weekends or holidays in the near future.  Many Americans will be on vacation, buying less at home, and grocery sales tend to slow during this period.   Trucks are readily available, although staying busy with melon, tree fruit and berry loads.  Fuel prices are expected to level out and decrease over the next few weeks.  Rates have remained steady but could be cheaper by early next week with less demand. West coast weather remains pleasant and mild and hot inland valley temps over the next 10 days. Ideal growing weather for coastal vegetables and fruit, expect nice quality overall from the west.

LETTUCE – Supply is improving as demand settles and more product is available country wide with cheaper freight costs. Still a fairly wide gap in pricing, although the trend has been downward and buyers are waiting it out.  For now the market seems to have settled with most shippers, with more following suit in the days ahead.  Quality is nice, some pink ribbing and brown butt issues but very minimal.  Could see aging issues as we expect some inventory holdover in the coming days.

BROCCOLI – This market is at the floor level, particularly on crowns. Eastern and Midwest product is flooding terminals with cheap product and demand remains sluggish.  Mild weather will continue on the west, bringing on high quality product.

CAULIFLOWER – Prices continue to settle, more product is coming out of fields and some shippers are looking for load volume sales.  There is still a gap in pricing between shippers and this market has yet to find coming ground. The trend has been downward but cauliflower market have proven to be significantly more volatile than other commodities.  Shippers may have load volume one week and sold out the next. Plenty of deals available but we suggest sticking to normal volumes.

LEAF – romaine is one of the few strong market items.  Numbers are light and demand has been high.  This market will most likely reach its peak within the next few days, high retails will move demand back to lettuce and alternate leaf items as price conscious buyers hit the stores.

CELERY – The past few days have breathed new life into the celery market.  Pricing has increased $4-$5 in the past few days. Supply gaps are mainly to blame for this, and sizing discrepancies have fueled the increase.  Large sized product is more readily available, and very few smaller sizes have resulted in a wider range in pricing between 24s and 48s.  More product has been left in the fields to size up in hopes of better markets.  As markets improve we should see more small sizes available next week.  Pricing, although stronger, is not expected to get much higher into the weekend.

BERRIES –

Strawberries –Produce remains tight, demand is strong, although weaker than previous weeks.  Weather is mild, although humid nights could result in softer fruit and quality issues.  Sizing tends to be on the smaller side, mostly due to current varieties being used.  It is best to stick with better labels this time of year to minimize quality issues.

Raspberries –Very tight, market is increasing and quality is getting worse.  Low supply and marginal quality have resulted in heavy pro rates industry wide.

Blackberries – Similar issues with blacks, soft leaky fruit is common for this time of year. Market is strong with heavy pro rates.

BATTEN DOWN THE HATCHES

Good Luck to those on the East Coast in the  wake of Hurricane Sandy. Produce will take backseat to Mother Nature for a  few days but once everything settles , hopefully without any major damage,  it will be  back to business as usual. Most major vegetables are running strong on the  West Coast.  Most shippers have good  quality and improving production on the majority of commodities .  By this time  next week the  next stage of transition will begin as a few shippers will start their Winter migration to the Coachella / Yuma desert area. Starting with Peppers, Iceberg lettuce then mix lettuce and eventually by mid to late November broccoli , cauliflower and the rest of the veg category.  Additionally transition with much of the fruit category is ongoing with Melons and berries already headed south for the winter.  With the current storm on the East Coast likely to finish off  the homegrown produce look for strong demand on the West Coast . Many shippers have expressed concern over the initial quality  from the new growing areas due to weather back in early September , combined with early holiday demand prepare for increased pressure on the markets  to react.

Weather in California/Arizona growing districts has been 10-15 degrees above normal ( 72/45 Coast ,  84/58 Inland desert)  but looks to return to Normal for the foreseeable future with very little precipitation predicted for the  month of November.  Everyone  knows about the weather around the  country and colder than normal temperatures are predicted to stay around for an extended period.

Truck availability remains good with rates  starting to edge down slightly. Fuel prices  are also predicted to go lower which will help rates even further.   As always  advance notice will give you the advantage of best rates and service.

LETTUCE-  Transition to the Central Valley continues with most shippers expected to have abundant supplies as most product is ahead of schedule. The second stage of transition will begin next week with a few growers starting production in their Winter home  in the desert. The early shippers  are the  ones who forewent Central Valley growing deals in favor of extending their Salinas  Valley deal.  Quality has been marginal but should  rebound in the Central Valley this week and should rebound in the desert once harvest gets  past the first few initial fields.  With a wide range in quality from both districts  loading fresh lettuce is top priority.   

BROCCOLI- Supplies of broccoli continue to be steady with crowns only slightly tighter than bunch. Production continues to be slightly ahead of budget adding to the current supply but will  cause a tightening during transition and possibly during the end of the Holiday loading period. This past weekends warm weather will continue to keep supplies ahead of budget. Volume  deals  are available but will become harder to find as we get further into November. Quality is  mostly good  Central Valley production will start up this week which will also help contain prices.   

CAULIFLOWER- Inventories continue to be higher than budgeted  but most shippers are starting to see an early end to their Salinas  growing region and likely impact production during the bulk of the Thanksgiving holiday. Quality remains good.   Most growers  continue to run ahead of schedule increasing the likelihood of tighter supplies by next week. There are no new districts to support demand and local homegrown production is nearing an end .

LEAF ITEMS- Romaine  and  Romaine Hearts demand will likely see a spike this week with Homegrown season coming to a Sandy ending although there continues to be plenty of supplies between Salinas, Santa Maria and the Central Valley. Demand on green and  redleaf will follow closely behind. Quality will continue to be  an issue in most loading locations with seeders and rib discoloration being the most prevalent defects. Quality won’t stabilize until getting past the first week of transition to the desert.

CELERY- Market has strengthened with early Holiday promotions starting as early as next week.  Most shippers don’t have the  labor capacity to handle the volume of orders  needed on a day to day basis without inventorying heavy volume in preparation of Holiday demand. A few  shippers  will continue to offer out volume deals to maintain rotation as their holiday demand comes  into focus.

ASPARAGUS– Production from Mexico continues to be  limited and demand has stayed strong. Quality continues to improve weekly. Supplies look to be on track for Holiday promotions but the market will likely start to get stronger as the early holiday promotions kickoff .

GREEN ONION- Production has leveled off  but demand continues to be weak especially on small size Green Onions. Pricing on medium and large sizes are slightly higher.  The market will likely strengthen by the end of the week

BRUSSELS SPROUTS-  Increased supplies and lighter demand has  prices continuing to  head lower. Although  demand for November promotions will likely prop the market  back up  by early November. Take advantage of good values  while supplies last.

STRAWBERRIES-  Oxnard will be the primary shipping region for eastern quality fruit although warm temperatures have softened even their new Fall crop. Availability for shipping east is Very limited. Continue to expect bruising issues on arrival.   Mexico availability will  start to increase quality offerings but expect the market for top end quality  to be strong through the Holiday’s.  Supplies on Raspberry  is better with improving quality.  Blackberries primarily from Mexico have increased and has led to easing in the market.

Presidents Day

Direction of markets continue to be dictated by Mother Nature. Whether warm thunderstorms in Florida, Cold nights in the California deserts or windy, foggy conditions along the California coast. On opposite ends of the country Florida has been unseasonably warm for the past month other than this past weekends frost warnings whereas California has been unseasonably cold with a few exceptionally warm days this past weekend. These ranges  in temperatures have made for inconsistent quality and supplies. The good news is March should bring some stability and with it promotable supplies. 



Weather forecast for the California Coast (norms:64/42-46) After a warm weekend in the 70′s cold weather returns for the balance of the month withhighs in the upper 50’s and low’s in the 30’s with occasional scattered showers. The Desert and Central Mexico  (norms:75/42-46lo) follow a similar pattern with high temperatures expected to be in the 60’s and low’s  in the upper 30’s with potential low 30’s again next week but dry. Central Florida forecast after a cold weekend with frost a return to slightly above normal temps (norm:75/53lo) for the forecast window.

Transportation continues to be steady with some midweek discounts. Fuelprices are starting to climb which will eventually have aeffect on rates. Plan ahead for best value and service.


****WARNING**** Extended below freezing temperatures have resulted in blister, peel and discoloration issues on most vegetable commodities along with occasional decay.  


CELERY- The celery market continues to see strength as good demand and reduced acreage combine to keep market active. Quality continues to show signs of frost damage including pith and will continue to have varying degrees of issues depending on production location. With fair quality occasional discounts have been available to ensure product doesn’t age in inventory.  Limited quantities being grown in the desert continue to result in a wide ranging market due to the fact most celery is transferred to Yuma for consolidation. The best values will continue to come from Oxnard.

STRAWBERRIESProduction has peaked from Mexico and Florida . Southern Californian Coast production continues to be hampered by colder than normal weather and misshapen fruit as a result of the previous frosty conditions. A few days of warmer weather this past weekend may help spur production but a return of colder than normal temps and occasional scattered showers will keep West Coast production in check through the end of the month when production should start to ramp up considerably. Florida production has slowed and quality will start to decline  especially with any additional thunderstorms and continued above average temps. Raspberries continue to be in short supply. Blackberries are available and offer a good value.  Stems continue to be very limited.

LETTUCE- Production has increased but quality continues to be just fair with blister and peel.  Shippers will try to strip down most affected leaves but that will increase mechanical issues and create further discoloration and breakdown. If quality is not too bad lettuce demand will again pick up and combined with cooler weather the market will continue to rebound..

LEAF LETTUCE-  Quality continues to suffer from blister, peel, discoloration and occasional decay. Romaine continues to be much tighter than the colors but the market has already adjusted significantly on the colors but Romaine products are now beginning to see significant adjustment  as competition from iceberg is having an impact. Quality issues from frost are now peaking causing shippers to strip down the Romaine into hearts which will further pressure the heart market to adjust. You’ll see with many shippers a  trend of discounting hearts more  than carton Romaine. Quality issues will persist through the remainder of the desert deal and likely to extend into the Spring .


CITRUS- Navel production continues with good volume and improving flavor and sizing profiles. Recent freezes have had minor impact on production so far only to increase choice offerings.  Steady increase in production will translate to better values as the season progresses.

CAULIFLOWER-  A return of cooler weather again slowed production last week and the market has regained strength. There likely won’t be another surge in production until the end of the month. Quality has been mostly good .

BROCCOLI- Quality along the coast is improving  while quality in the desert and Mexico continues to be good. The market bottomed out last week and with the return of colder than normal weather and will advance through most of this week. Additional production from California Central Valley will start next week which should keep the market from escalating too high although cooler weather will tighten supplies especially in the desert  but too many production areas will keep a lid on overall market  Wide ranging quality will make it necessary to watch quality depending on loading location.

ASPARAGUS- Production from Mexico is finally starting to increase but at a minimal rate while Peru’s volume has continued to drop. There are a significant amount of  early season ad promotions that will stabilize the market in the short term but look for increased volume and lower pricing as the weather warms. Most shippers are hesitant to offer Easter ads just yet but as production schedules start to come into focus promotional offers will be abundantly available as most shippers are optimistic about supplies once the weather warms.  An early Easter Holiday will get retailers to promote heavily so get in on advanced deals when available.

GRAPES- Limited shipments from Chile and Peru have kept the market strong especially the Red varietals. Shipments are  increasing again this week with better sizing expected especially  the Reds . Red globe and most Green varietals with the best quality continues to come from Chile

CARROTS Carrot production has been steady.  The market is steady locally and  bulk supplies from Mexico  continue to keep pressure on the market to maintain.

ARTICHOKES- Currently most supplies of artichokes are “frosted”  and shippers  are offering discounts to keep them moving.  Supplies will start to increase by next week and shippers  are hoping frosted chokes give way to “clean” artichokes for Easter Promotions.