PROBLEMS CONTINUE


We thought we saw the light at the end of the tunnel after our worst winter in 50 years, but it’s not over.  Huron had a positive start 2 weeks ago but was pelted with hail which destroyed much of the leaf supply. Salinas got more rain this past week and near freezing nights which have hurt an already fragile start in production.

Trucks are especially tight this week due to high Easter demand.  Rates are going to at least 1000 dollars more than they were two weeks ago.  High fuel prices are keeping rates up as well, we don’t see any relief in fuel prices as we head into the summer.

Long range weather sees a slight improvement in temperatures in the Salinas Valley; however we are still plagued by some cold nights this week.  The good news is it looks like we will have a much needed warming trend after this week.

LETTUCE — Product is looking ok for now, some outer leaves have been affected by cold weather and have been shed down to the inner leaves, resulting in lighter weights.  The market seems to getting stronger this week, but should level off after the Easter pull.

BROCCOLI– Tighter supplies, some shippers are sold out early this week.  Salinas, Santa Maria, and San Joaquin Valley are picking up supply daily.  Supply is tight but should improve significantly by Friday.  There is plenty of product in the ground nearing maturity.

CAULIFLOWER– Quality is good, similar to broccoli.  The market is still strong for 9s and 12s, but flattening out as more and more shippers begin operating and product sizes up.

LEAF ITEMS– Huron had a good start but problems arose as weather because cold and rainy.  Growers are doing a good job avoiding major problems.  Very few quality problems up to now but expect to see some later this week.  Salinas is slowly starting production but Huron will continue for another 2 weeks.

CELERY– Very good quality reports today. Supplies are increasing. Some product is showing early seeder issues but minimal damage due to the fact that weather has been cool.  Expect the market to remain consistent for the time being and some deals are out there.

ASPARAGUS — Fob prices have SKYROCKETED for Easter business.  The problem: Easter is late this year and volume, which had peaked 2 weeks ago, is diminishing.  The desert is finished and product is now coming out of northern areas like Salinas and Stockton/Lodi, all of which have barely started production.  Quotes are over 60 dollars FOB and going up.  Most Easter ads were pulled and we are lucky to get any product at all.

STRAWBERRIES – This past weekend’s temperatures were RECORD LOWS for Oxnard, dipping into the low 30s. It was a 50 YEAR LOW. While the weather looks nice all week in berry country, shippers are SO backed up, that this Easter pull will be hit HARD with pro rates and cuts. Some shippers are claiming that they were 20 loads SHORT of their orders over this past weekend. Shippers are hundreds of thousands of cartons short of their demand for the next few days.  EXPECT to have your orders cut.

Ed Brem

ed@producewest.com

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