COOLER WEATHER OUT WEST


Weather for the next 10 days in Central California show below normal temperatures, and a chance of rain early next week. This basically spells out slow growth for most vegetables and berries, which could push some markets upwards.

Truck rates are fairly flat this week, and should remain steady until we get some volume on the upcoming fruits. In addition, we have all seen that fuel prices are expected to FALL in the coming weeks, which will certainly help rates and stop truckers from screaming “higher rates due to higher fuel costs!”

LETTUCE–cooler weather in Salinas and Santa Maria areas have slowed down growth and production, enabling shippers to push their market up. The past few weeks, prices have been below growing and packing costs (which is around $12.50 FOB), so they are at least trying to get to that point. We don’t see the market going up too drastically, but maybe in the $13-14.00 FOB range. Quality is improving.

BROCCOLI–after weeks of a depressed market, prices are rising. One reason is that fields came on so fast, that there is a bit of a gap in supplies, allowing shippers to pump up their prices. But, again, we don’t see prices going crazy. Most supplies coming out of Salinas and Santa Maria areas.

CAULIFLOWER–a real shortage here. Cooler weather has created a gap, and we see this all week. Prices are already close to $20 FOB, and could go higher, at least until retail prices change and demand drops. FEW 9s around.

LEAF ITEMS–seems to be plenty of romaine and red leaf, while green lead continues to be short, with as much as a $5.00/box spread between green and red leaf. Still, it would be wise to shop around your leaf orders, as there are deals out there, either in Salinas, Santa Maria, or Oxnard areas.

CELERY–shippers have pushed all sizes upwards of $20-23.00 FOB and we are now seeing demand slip. Keep in mind that freight this time of year pushes a box of celery to the East coast upwards of $10.00/box, making delivered prices well over $30.00 in the East! Prices are currently holding, but we should see them come down towards the end of this week. Oxnard and Santa Maria are the main areas, but Salinas should get going in another 3 weeks, or so.

STRAWBERRIES–last week was VERY short, and today is also tight. Demand should drop off starting tomorrow, and we should see things loosening up by this weekend. But, we mentioned cooler weather, with a chance of rain next week, which could turn things around again. Once soft fruit kicks in, the berry market should tumble.

Ed Brem

ed@producewest.com

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