Ridiculous Markets

Even using the term “ridiculous” for the current market conditions doesn’t describe it. Things are BEYOND ridiculous. Lettuce, romaine, green leaf, red leaf, boston, are ALL off the charts, as far as the markets are concerned. Broccoli, cauliflower, celery, while high enough due to Thanksgiving demand, pale in comparison to the items mentioned. When will these conditions improve? Most shippers think things will be crazy right through the end of the year. We’re starting to believe them.
Long range weather in the growing areas of Salinas, Santa Maria, San Joaquin Valley, and the desert areas of Yuma and Imperial Valley, show mild, dry days, and cool nights. Not much in the way of freezing yet, which could come the first part of December. Also, no measurable rain forecasted for any of these regions for the next 10 days.
Trucks have been a real stressful situation last weekend and into this week. Typical supply and demand scenario for Thanksgiving. Truckers held out this past weekend for TOP DOLLAR rates, and got them. Rates for trucks to the East coast were as much as $1500-2000 MORE than they were the week before. We see the same situation this week, as the last of the Thanksgiving loads go out.

LETTUCE–Huron is just about finished, as we now switch to the desert areas of Imperial Valley and Yuma. We will be loading out of those areas for the next 4-5 months. The market, after a run up the past 2 weeks, has appeared to have peaked, but at a high price. We see a continued strong trend all of this week, and into next. The market is easily $20.00 FOB, which could equate to close to $30.00 on the East coast for wrap 24s.

BROCCOLI–good demand and strong market for this typical Thanksgiving item. LOTS of ads out there, so orders are heavy, and should stay that way all of this week. Next week we could see things start to back off.

CAULIFLOWER–another item that is usually a good cooking item for Thanksgiving. The market has backed off from last week’s highs, but will probably bottom out where it is. This is one where we could see the market get stronger by this time next week.

LEAF ITEMS–what can we say here? Romaine $40-45.00, green leaf $20-25.00, red leaf $25-30.00, boston $25-30.00. Obviously, there is a shortage of supplies out West, and the shippers have run things up to the point of, did we mention the word, “RIDICULOUS”? The desert has now started and those growers and shippers have been chomping at the bit to get some of these prices.

CELERY–good movement last weekend and into this week, with big volume going out to all areas of the country. Still, celery isn’t as big as it once was for Thanksgiving, when you actually MADE turkey dressing. We will probably see demand start falling off this weekend, and there could be some deals available at that time.

STRAWBERRIES–a VERY wide range in price for berries. In fact, there is as much as a $10.00 SPREAD between the mostly market and Driscoll. Overall, though, demand is only so so for berries. Raspberries, blackberries, blueberries, and golden raspberries are available, but with very inconsistent supplies.

Leave a Reply