Stronger Markets

Unusually cool weather in California has really slowed growth and harvesting of several items that are trying to come on. Head lettuce, green leaf, cauliflower, celery, strawberries, and various other items are just not coming, and the stronger markets are reflecting that.

Long range weather in Central California show continued cool weather, with a chance of rain today, but clear after that. Our rain should be just about totally done now until fall. That is under normal weather patterns. However, this year has been ANYTHING but normal.

Trucks have been a bit scarce these past 2 weeks, going in to Mother’s Day. With Memorial Day business scheduled to start pulling at the end of next week, expect things to get tighter and more expensive.

 

LETTUCE–even though May is the biggest volume month for lettuce of the year, supplies have been affected by the off and on rains and cool temperatures. Due to this, right now we are in a bit of a gap, and the market is VERY active, with prices getting near $18-20 fob. There are quite a few ads out there, so demand is solid.

 

BROCCOLI–good supplies and market for bunch 14s and 18s. Crowns, while still available and currently priced right, look to lighten up in supplies by the end of this week, with a bit of a gap going into next week. Prices should strengthen.

 

CAULIFLOWER–cooler temperatures continue to keep supplies light, and market very strong. We NEED warmer days to bring on supplies. The flower is out there, it just needs a PUSH

 

LEAF ITEMS–still plenty of romaine and red leaf, but green leaf still short, and nearly double the price of red leaf. Romaine is a good one to advertise.

 

CELERY–still a huge price gap between Dole, T&A, and the rest of the shippers, with as much as a $5-6.00/box spread in price. These 2 shippers need a reality check, but as long as their customers don’t mind paying their prices, they will continue to walk the walk. With freight rates continuing to go up, we are seeing a box of celery costing as much as $10.00/box for just freight to the East coast. It WILL get worse as the summer gets closer.

 

STRAWBERRIES–shippers keep talking about supplies picking up, but every week it remains short and orders get pro rated. This is all weather related. Scattered rain, and continued cool temperatures keep hurting supplies. Next week there appears to be a light at the end of the tunnel, with supplies expected to improve considerably.

 

Ed Brem

ed@producewest.com

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