THANKSGIVING PUSH

This week, trucks are loading product for Thanksgiving business to eastern destinations. This is probably the most exciting time we’ve had since Memorial Day business. Shippers are pumped up, anticipating BIG business on items such as celery, broccoli, cauliflower, brussels sprouts, lettuce. With this increased business, the markets are ALL reacting upward. And while this week will certainly be crazy, it will come to a screeching halt by next week, when the last of the eastern business stops, and just west coast business will be going.

Long range weather in the growing regions shows cooler weather this week, but less rain than had been anticipated.  Salinas, Huron and Yuma all show the possibility of rain Sunday.  Luckily we will be past the major holiday push by then.

As can be expected, truckers are pushing their rates up for the holiday and demand is ensuring they get those rates, however we should see a significant drop by later next week and rates may settle back to where they had been a week ago.

LETTUCE — Mostly loading in Yuma now.  Early reports show lighter weights, ribbing and feathery heads.  This is typical for this time of year, we should never expect perfect quality when so many variables like weather and crop transition are added to the mix.

BROCCOLI — Very tight.  Ad commitments are putting shippers in a difficult spot, volume is decreasing and markets are going through the roof.  Many ads that were set up months ago are not being honored due to lack of product.  Of course it is easy for a shipper not to honor a $10-12 ad when the market is $24 FOB.  A maddening scenario but all too common in our industry.

CAULIFLOWER — Also very tight.  This cold weather has brought production to a standstill and the little product that is out there is nearing $30 FOB.  That puts delivered prices into the mid to upper $30 range.  This will be a market killer once Thanksgiving push is over.  Salinas product will end production around Thanksgiving time and Yuma will be in full swing.  Early reports show product is holding up, however if Yuma gets a significant amount of rain this weekend we could see some problems further down the road.

LEAF ITEMS — Prices are going up on all leaf, romaine, green, red, boston.   Shippers are inflating prices as high as possible this week to make up for a poor summer market.  Product condition is less than satisfactory; most shippers will put anything in the box to capitalize on high markets.

CELERY — FOB prices hit a wall last week, mostly due to high freight rates.  As long as east coast truck freight nears the 8000 dollar mark, we are not going to see a 20 dollar celery FOB.  Quality is nice, temperate days mixed with cool nights have provided nice growing conditions.  Product is mostly available in Oxnard and Salinas ends this week.

STRAWBERRIES — Huge pro rates currently.  We are now in the pattern of about 1 rainstorm a week, and berries cannot hold up consistently under those conditions.  Florida berries will be starting in a few weeks.  Quality is marginal and most shippers are not willing to go east, with the exception of Driscoll and only a handful of other shippers.

Ed Brem

www.producewest.com

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