WEATHER WARMING UP, MARKETS COMING DOWN

Like the total opposite of two weeks ago, warmer weather in the desert growing regions is now going to bring on more product, and markets will start to come down. Two weeks ago, there was a freeze in the desert, product stopped growing, and the markets skyrocketed. Now, we have had several nice days, with more coming, and product is coming on. The markets on several major items, such as broccoli, head lettuce, and cauliflower have already peaked out, and are headed for a fall. It’s important that you watch the market, don’t buy too heavily, and buy with market protection.

Long range weather in the desert shows mid to high 70s in the day, above freezing at night. No rain. That is all GOOD news.

Trucks are plentiful, and rates are about on the floor. Truckers are balking at going too low due to high diesel costs across the country.

LETTUCE–after peaking out in the mid $20s fob last week, shippers are desperately trying to hold on to their market today. We don’t see them able to do that. Already, there is a wide price range out there, and we expect a steady price slide downward all week. Quality is improving, as shippers are trimming off the freeze-affected product. There is also an “air borne” disease that is sweeping the desert growing regions that could have “potentially” devastating effects on supplies for the next several weeks. We’ll see what happens with that. Usually, these things are more bark than bite.

BROCCOLI–this market also peaked out last week, with crowns pushing mid-$20s. Now, with Florida and Texas picking up volume, demand has slowed in California and Arizona, and we are expecting the market to crash. We will be buying cautiously.

CAULIFLOWER–here is another item that spiked last week, and now headed for a fall. Currently, there are deals out there that are nearly HALF of what was quoted last week. However, this market could/should bottom out by mid week, and then possibly bounce back by this time next week.

LEAF ITEMS–still problems with romaine, and freeze effected product. It is a tedious process for the workers to trim off the bad leaves, and it takes time. This means less product harvested and lower yields in the field. That is keeping the market strong, and should be wide ranged in price all week. Red is still scarce and high priced, while green is quite a bit lower.

CELERY–steady market. Prices are still fairly strong, especially with shippers like Dole and T&A. They are quoting as much as $5.00/box more than the general market. Volume continues to come mainly out of Oxnard, however, Yuma is picking up more and more volume every day.

ASPARAGUS–this item is TOTALLY controlled by weather. When it is cold, it comes to a complete standstill. When it warms up, you can almost stand out in the fields and actually watch the grass grow! Most shippers are now packing 28/1# cartons. There should be some deals out there later this week.

STRAWBERRIES–with no rain in sight for the next 10 days, we should see more volume come out of Oxnard and prices should start coming down. Florida, however, dictates demand and business, especially for East coast receiving. Still, most everyone would rather have California fruit this time of year, if there is a choice. Berry size is usually HUGE, sugar is SWEET as candy, and berries are hard as bullets.

Ed Brem

ed@producewest.com

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