MARKET UPDATE JAN 12TH, 2023

Good morning,

The California coast line and several CA growing areas have been pounded by rainstorms all week. This weather event, appropriately categorized as a bomb cyclone, caused major flooding and power outages to the largest agricultural areas in North America. While our thoughts are with our friends over on the west coast, as an industry we are fortunate that many items commonly grown in California are finished for the season.

ORANGES and LEMONS are produced in California all year long. Luckily, at this time of year the major production area for these fruits is in the arid desert region in southern California, neighboring Arizona. Although these growing areas missed the major flooding events, there still has been an abundance of rain over the last week. Look for LEMON and ORANGE supplies to tighten up in the coming weeks, especially ORANGES as Florida production has been hampered due to a few late season hurricanes.

While here in the south east most of our ASPARAGUS comes from imports, the overall pricing trend can be impacted by supplies out of the west coast. What we typically see in situations like this is that California supplies weaken and buyers have to haul imported asparagus over to the west coast in an effort to keep up with demand. In the coming weeks, we will most likely see some price increases on ASPARAGUS, depending on how severe the shortage is out west.

CABBAGE is in a supply gap. With a lack of supply out of GA and Florida, shippers are bringing in cabbage from Mexico, Texas, and even storage crops out of Canada! Mid-last week, one of our growers informed us it would be about a two week gap, so as long as other growers are on a similar trendline, we should see some relief in a week or two.

With all of this doom and gloom weather on the west coast, it is hard to believe that veg markets continue to fall! LETTUCE, ROMAINE, BROCCOLI, and CAULIFLOWER supplies are looking flush out of Arizona. All of the above mentioned goods are priced to sell, with shippers carrying ample supplies of good quality.

STRAWBERRY supplies are typically very strong in January but this year is a bit different! The farmers' almanac predicted a la nina weather pattern for 2023. This involves periodic cooling of the pacific ocean, causing significant weather events, often successive rain and cold cycles. Well, it seems the almanac's prediction was correct, as we have seen unseasonably cold temperatures here in FLORIDA berry growing areas as well as some major rain events in the pacific. The cool temps should create some great quality fruit, but will keep supplies well behind demand, especially with the shortage out of California. If this pattern remains the same for the next few weeks, we may be in for some prorates to finish off January, but ample STRAWBERRY supplies for Valentines Day.

More as it happens,

Parker Tannehill