LITTLE CHANGE IN MARKETS

Not much change in the markets for the major vegetable items, and there is one main reason: TOO MUCH PRODUCT. There is just too much product planted in the desert growing regions of Coachella Valley, Imperial Valley, and Yuma, and the markets just can’t get off the floor, no matter what the shippers do. Often times, they are their own worst enemy. They continue to pump out product every day, and when they can’t sell it FOB ,they send it to various terminal markets with NO price on it, and that continues to keep the markets depressed. Doesn’t make any sense.

Except for a slight chance of rain forecasted for Thursday, the next 10 days in the desert growing regions show normal temperatures for this time of year, with highs in the mid 70s, and lows in the high 40s.

Trucks are still plentiful, and rates are steady. With the increasing fuel costs, truckers are pushing to get more money to all areas of the country.

 

LETTUCE—this market can’t get off the floor. Shippers are trying desperately to raise their prices to at least a break even level, but with little success. Some shippers are finally saying they are putting a bottom on their price, and won’t go a penny less, so there is a bit of a price range for that reason. Quality is generally good, with better size and weights. Shippers definitely have to put their best product in box when conditions are like this.

 

BROCCOLI–this is like a broken record. Just too much product. Again, we point out that with supplies coming out of areas from Santa Maria to Virginia, there is little chance that the market can go anywhere. We don’t see too much change in the market for several more weeks, or until there is a weather change…somewhere.

 

CAULIFLOWER–more of a price spread here, with as much as a $5.00/box difference, depending upon the shipper and area. The shippers in Santa Maria are where the best deals are coming from because, with most of the trucks loading in the desert, they have to discount their prices to make it worth while to come to Santa Maria. Generally, quality is good in all areas.

 

LEAF ITEMS–slow demand and sluggish market on romaine and red leaf, while green leaf is getting and extra $2-3.00/box. Most of the supplies are coming out of Coachella and Yuma areas, while there is still product in Oxnard.

 

CELERY–not much change here. The majority of the celery is coming out of Oxnard, but Santa Maria and the desert are also pumping out increasing numbers. We are seeing as much as a $3-4.00/box spread in price for the various sizes, depending upon the area and shipper, with Dole leading the way.

 

ASPARAGUS–prices tried to get up last week for Valentine’s Day business, but are now back to the levels of the previous week. Right now, this is a GREAT time to advertise asparagus. Prices are low, there are plenty of supplies, and quality is VERY NICE.

 

STRAWBERRIES–with Florida having problems with freezes, there is a LOT of pressure for California and Mexican berries. There are quite a few ads out west, and not enough product to go around. Still, looking at the long range weather in Florida, things should get back to normal there and take some pressure off the west. We should see volume increase in California the next few weeks, depending upon the weather.

 

Ed Brem

ed@producewest.com

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