MARKET UPDATE 06.23.24

Greetings produce partners!

The theme of this past week was certainly "adverse weather conditions". From rainfall in Washington state's Cherry country, to the first named storm of the 2024 hurricane season, tropical storm Alberto, crashing into the eastern coast of Mexico, to the relentless rainfall and mudslides in Guatemala, multiple growing regions are having trouble with mother nature heading into the weekend.

Scattered rainstorms reduced the amount of CHERRIES shippers were able to pick and pack by about 30% last week. When volume is limited to this degree, national retail ads are the first orders to get covered, while wholesalers and exporters are left without much volume for themselves. The good news: the weather this week has greatly improved. A full week of clear days and cool nights will hopefully mean plenty of cherries to go around for next week's orders.

Tropical Storm Alberto made landfall in Eastern coastal Mexico this morning. Although the region has been in dire need of rain, flooding conditions and high winds are not what the doctor ordered. GRAPE TOMATOES, ROMA tomatoes, and other veg items including BELL PEPPERS will be the main commodities affected by the storm.

Central American growing regions in Guatemala have been experiencing heavy rains and mudslides this past week causing disruptions in the availability of FRENCH BEANS, PEAS, BLACKBERRIES, and other veg items like baby squash and broccolini. Grower's fields are completely underwater in some regions, so expect French beans and peas to remain tight for at least a few weeks.

RED GLOBES out of Chile stopped arriving in USA ports and the last few shippers with any inventory have all but cleaned out their coolers completely. Quality had held up reasonably well in the late season fruit, but we are now entering our annual gap in supply on seeded grapes which won't be alleviated until Mexican globes come into the market in about the 2nd week of July.

But there's good news as well!

California stone fruit is in full swing, and we are seeing more varieties available this week with pricing becoming more favorable as supply improves.

Domestic CANTALOUPE and HONEYDEW are seeing improved quality, flavor, and availability this week. With even more acreage coming online, the time is now for summer melon promos!

Volume of ROMAINE, ICEBERG, and LEAF lettuce is improving in the Salinas valley, with Canadian lettuce in the mix as well. We are still seeing some minor issues like tip burn due to the high daytime temperatures, but with supply still trending upwards, we can expect pricing to remain in a comfortable range in the coming weeks.

However, the same can't be said for BROCCOLI, which should remain very tight for the next 2 weeks at least. Since Mexico has been in a severe drought, product south of the border has completely dried up.

More as it happens,

Robert Bare