As anticipated the Iceberg Lettuce market escalated to historical levels amid the romaine advisory by the CDC. Demand for leafy veg items, especially iceberg, immediately spiked and prices reflected the lack of availability as buyers scrambled to fill their “Salad Bowl”. Now that there has been some resolution to the Romaine situation, demand and prices for iceberg should ease although now the desert forecast for below normal temperatures and precipitation along with possible frost next week could further “muddy” the situation. Expect continued volatility with supply and demand curves defying conventional wisdom. Quality from the desert continues to vary with many soft puffy heads and light texture as shippers reach for supplies.
Mix Leaf
The unprecedented CDC Romaine advisory affected ALL levels of the Produce Industry with many suffering significant losses. Now the FDA and CDC has released the voluntary ban the built up synergies have the markets adjusting to a variety of factors and seeking a sustainable level. Updated labeling, clearly defining production by Country, State and now Counties or Valleys, will further help customers trace their supplies as diligently as Growers have the past decade. As expected Green leaf and Red leaf demand went through the roof, and now that romaine has been “reinstated” demand for Green and Red leaf should ease but both have been cut so far ahead to fulfill overwhelming demand with cooler weather forecast expect lighter supplies to coincide with easing markets.
Brussels Sprouts
Domestic production from Northern Coastal region continues to be strong. The market has held mostly steady with heavy demand helping keep prices firm. A few quality issues from insect pressure remain but overall quality is good.
Celery
There are adequate supplies available in multiple growing areas. Salinas has product available and is looking to move product to finish out the season. Santa Maria and Oxnard areas are currently in full production and taking offers on load volume. There is a better balance of pricing between sizes this week. Quality is very nice with very few problems to report. With widespread rain hitting the west coast we could soon see gaps in production and muddy product. Rain is expected to continue off and on through the weekend and will certainly slow weekend harvest.
Strawberries
Supplies will continue to decrease going into the weekend. Weather forecasts are calling for rain in all growing regions including California, Mexico, and Florida. California and Mexico are expected to get the heaviest rainfall. We expect California to completely sit out of harvest on Wednesday and possibly Thursday due to the inclement weather. This storm may put an early end to the Santa maria season and putting the the main focus on Oxnard. With Salinas and Watsonville finished,fruit will be limited. Additionally, with Mexico’s already light volume, the rain may set the industry into a very challenging supply shortage for the next 2 weeks. Quality will be affected by the rain and we will see soft fruit that is easily bruised. Pin rot will be the norm. Supplies will be light through the weekend with many suppliers being in a prorate situation.
Blackberries
Mexican blackberries are in good supply. Markets have been flat with aggressive deals loading in Texas. There is rain expected over the next 3 days, so we can expect supplies to lighten up. Even with the fruit under hoops, colder temperatures, combined with rain will slow growth and production.
Raspberries
Production has slowed down this week as we moved throughout first peak production window in Mexico. Supplies will be consistent into next week, barring and rain interruption. Mexico is forecast for heavy rains for the next 48 hours. Even with the fruit under hoops and protected, harvest will be hindered by limited labor and poor working conditions. Colder temperatures will slow growth of the plants. We may see a small gap in supply over the weekend and early next week as we navigate this storm. Market prices have come up slightly and will remain firm.
Blueberries
Blueberry supplies have been consistently steady.. We have plenty of fruit arriving from Argentina, Peru and now Chile. Mexico. There maybe a lull in production because of the forecast for upcoming rain. Markets have started to climb this week with slight increases on both coasts. Depending on how much the rain affects the Mexican supply, we maybe be in for a spike in pricing next week.
Cauliflower
Light supplies will remain in effect for the next 10 days. There should be increased production out of the Imperial Valley and Yuma by the middle of December. Quality out of Salinas and Santa Maria has been fair. Light yellow cast and some soft shoulder is being spotted but is not prevalent through out the industry.
Broccoli
Market will remain strong as we finish out the week. The production gap we are currently in should start to close up the second week of December as production out of the Imperial Valley and Yuma comes in line. We should start to see increased production out of Central Mexico next week. The weather forecast for Central Mexico is calling for some rain and cooler temperatures this weekend and into early next week but hopefully it will not hinder oncoming production.
Limes
From Mexico, Lime supplies are mostly good and should be through mid-December. Market pricing is steady. Supplies expecting to tighten up mid-December through the first of the year. The smaller sizes will be limited in supply during this time frame and prices will climb higher.
Artichokes
Production continues steady with improving demand especially on the Heirloom variety. Most varieties currently are seeded or Thornless. at reduced prices. Production is peaking on Medium size profile Some frost has been reported in Salinas and Mexico which will impact quality. Forecast for frost in the desert next week could further hamper quality.
Stone Fruit
The first arrivals of imported Stone Fruit season is expected for the end of December/first of the year.
Grapes
The grape harvest from California is generally completed. There is plenty of inventory to promote grapes through December. In regards to quality, there has been condition issues with some of the crop that has been held far too long in cold storage. Most all of this fruit is being dumped into the terminal market at ridiculously low prices. On grapes of good to excellent condition, the market is steady on seedless reds and blacks while the green seedless market is starting to make a move higher on the best available greens. The predominant varieties are: Red Seedless- Scarlet Royal, Allison, & Crimson, Green Seedless – Autumn King, and Black Seedless – Autumn Royal.
Green Onions
Production has started to improve mostly on iced Green Onions but ice less supplies should improve heading into the weekend although cooler weather in Mexico will lessen the impact. Quality should also improve with an improvement in weather.
Squash
Stronger markets industry on squash this week, especially on yellow and grey varieties. Mexico is transitioning growing regions, resulting in supply gaps over the coming week. Cooler weather and rain showers are expected into next week, which will affect quality.
Asparagus
Shipping has now shifted from the Central California to Brawley. This is for loading only…the product is still coming from Baja Mexico.
Prices at the moment are depressed in the $18- $19 range on 11/1 standard, lower prices on Jumbo.
Peru is experiencing heavy volume in ships arriving daily with 30 to 40 containers on each load. Pricing for the Christmas pull has lids in the mid $30’s and, depending on demand, will adjust downward.
Onions
An Idaho-Eastern Oregon shipper said he’d seen brisk demand, and customers seeded to be stocking up. Quality was good, and pricing was less than optimum. Another IEO shipper said cold, dry weather allowed farmers to get fall field work finished, and he called demand good with a solid Thanksgiving trade. The price was “still cheap.”
Western Colorado and Utah were seeing “phenomenal demand” for their onions, and though trucks were tightening up, the feel was that the market was getting better.
Crop updates that week said the Imperial Valley was finished planting, and shippers expect a “manageable crop” with fewer planted acres.
The Texas Rio Grande Valley was also finishing the last of its planting and replanting, with one shipper telling us a normal start time and normal crop are anticipated. Mexico is in the ground, with some shippers expecting loads in mid- to late January and others around the first of February.
Lemons
The demand for California/Arizona lemons is strong. Fruit is peaking on 140/165/115 size in both growing regions. The quality of the product as been excellent and is expected to remain so for the near future. The market is forecasted to remain firm for the coming week. As the Spanish/Turkish imports arrive over the next few weeks, we could see the market ease a bit. We will keep you posted.
Cantaloupes
Mexico continues to wind down and should be for all intents and purposes a non factor. Ditto for domestics and the last dregs are being harvested this week. So we are not dependent almost completely on the offshore deal, which is harvesting only in Guatemala at this point. Guatemalan fruit seems to be imported by one big player and a couple of much smaller volume deals. Sizes are running large. Volume has been adequate. Contracts have been taking almost all the volume, leaving just a small percentage open to the spot market sales. Contract pricing is in the 11.00=12.00 range, but the spot market stayed steady in the 19.00-22.00 range. Little looks to be changing for the next couple of weeks. Guatemala will be the main if not the only area producing. Demand will be mostly contract and spot market should remain on the snug side with fair demand and steady prices. Around the 3rd or last week of December we should see some other production areas come on line with increased volume and adjusting prices.
Honeydews
Honeydews are dribbling in and lagging in production from Guatemala, and that trend looks to stay in place for the next week. Mexico will continue to produce but have light volume. Domestics are history. Sizes off shore are running very large in the jbo 4 and 5 range with a few 6s (mostly jbo6) Mexico has a more democratic run of sizes but light volume. Prices have been firm with deals only showing up on jbo 4s off shore. Mexican volume should be decreasing next week as their volume normally does in response of off shore’s normal increase. But the increase off shore looks to be delayed about a week of 10 days. Once again contracts are dominating demand and spot market is just following along. We look for little change for the next couple of weeks and perhaps a price adjustment toward the end of December or the first of the year.
Oranges
With the Thanksgiving holiday last week and rain/showers in the forecast today through Friday, the navel harvest has been irregular and combined with good demand we are seeing supplies tightening up a bit. The size structure is still running small with sizes peaking at 113, 88, 138, and 72. 88’s and larger are moving out quite well with deals available 113’s and 138’s. Over the next couple of weeks, prices should remain steady to slightly higher if we get a rain market. Brix averages remain at 10-12, some 13.
Organic Items
OG Broccoli & Cauliflower
Cauliflower The market has been firm with lighter supplies due to cooler evenings. Quality has been good with some insect pressure reducing yields
Broccoli Production will be light until full transition to the desert takes affect. Expect the market to remain strong. Demand has been steadily improving.
OG Herbs & Bunch Greens
Most Herbs and Bunching Green production continues to be limited until full transition to Arizona and Mexico takes place in coming weeks. The markets are expected to remain strong through November.
OG Leaf and Iceberg Lettuce
Leaf, Iceberg will become extremely high demand with prices expected to rise substantially as Romaine Production rebounds from the CDC advisory
OG Citrus
Lemons: Steady production and improving quality has led to better demand and stable pricing. Mexico and Chile quality is still variable and supplies should hold steady with a higher percentage of fancy fruit expected.
Oranges Navel production continues to improve although sizing profile is still running below normal. Expect prices to ease heading into the Winter Citrus season . sizing profile will likely remain smaller through November.
Limes: Improved weather in Mexico should help increase Supplies. Quality has held steady despite weather interruptions.
Grapefruit: Production is light and desert supplies expected to ramp up next week. While supplies from Mexico are expected to improve this week..
Mandarins: Production has begun and is expected to ramp up in time for The Holidays. Prebook now to reserve your Christmas volume.
OG Avocados
Mexico: Production from Mexico has been shut down for the past 3 weeks with inventories completely wiped out. The discord among growers, laborers, cartels and the Mexican government is expected to end this week although unconfirmed. Additionally rain is forecast for the area next week which could further hamper production. Promotional supplies were expected to be available through November but with the current unrest supplies are on hold.
California: Season will begin early 2019
OG Grapes
Green & Red Central Valley supplies continue to be excellent along with outstanding quality. Specialty varieties, especially reds are exceptional size and brix levels. Possible rain in the forecast next week could affect quality but inventories are reported to be strong.
OG Root Vegetables
Carrot Production has been steady with good supplies . Winter advisories forecast for the next couple weeks will likely lead to reduced supplies Continue to plan ahead to get full coverage.
Potato supplies will continue steady with most supplies moving into storage on Gold, Red and Russets.
Onion demand has been good and production has finished as supplies will be shipped out of storage. Expect quality to be good through December but could decline by the beginning of the new year.
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