MARKET UPDATE 07.07.24

Good afternoon,

Our thoughts are with those in and around the path of Hurricane Beryl. Such a strong storm this early in the season brings so much pain to the region, and we are here to help where we can. We hope that you and all your loved ones are safe and sound during these trying times.

Prices are out early this week as we are going to be celebrating our Independence Day tomorrow. The fourth of July also signifies the beginning of summer, and as we enjoy our day of celebration the fireworks won't be the only thing soaring tomorrow.

FREIGHT RATES are nearing their peak of the season. As STONEFRUIT, GRAPES, and MELONS, join the rest of the fruit and veg coming out of California, Fourth of July retail ads push demand for a hot summer start. The increase in the need for trucks nearly doubles from early June and TRUCKING companies become some of the most popular people on the west coast! The increase in cost will cause some heartburn but most importantly, getting product loaded and received on time for next week will be a battle fought throughout the holiday weekend.

BROCCOLI markets have cooled off thanks to some favorable weather in Salinas the last few weeks. Warm conditions this week and next should help continue the slide on BROCCOLI prices, as well as keep items like CAULIFLOWER, LETTUCE, and ROMAINE in check.

Freight costs are not the only thing holding up LEMON pricing. Sizing is mostly large, peaking around 115 ct, leaving smaller sizes well behind demand. The lack of smaller fruit has pushed pricing up for the last few weeks but there is some good news ahead! CHILEAN LEMONS are starting to show up in a light way. As long as the import supplies continue to increase for the next few weeks, we should see markets ease off a bit in time for increased domestic supplies.

CELERY production is starting up in CANADA! This season we have been lucky enough to see Southern California production overlap with early Salinas and Canadian CELERY. The overlap will keep pricing competitive while we fully transition into new growing areas.

More as it happens,

Parker Tannehill