MARKET UPDATE MAY 23-27, 2022

Good afternoon,

This week is DOT week in the states. Also known as, .Blitz Week., DOT week happens once per year and is an exercise for the department of transportation to execute as many roadside checks as they possibly can. With many drivers leaving their trucks in the garage for the week, and the ones on the road looking to make a few extra bucks, FREIGHT COSTS will be about 10% higher for the week. We will see a bump in price for this week's sales but luckily, DOT rate hikes should only last a week.

CELERY remains an incredibly tight item. Very low supplies out of California have led to a demand exceeds situation and markets over $50. We are still a few weeks away from any significant supplies expected out of northern California, leaving Oxnard production to cover most of the US demand.

CABBAGE fields in Georgia look primed for production! The last several seasons of Georgia cabbage have been scarred by rain and heat. As long as the weather holds, it looks like we should expect some favorable FOB.s on GA CABBAGE.

STONE FRUIT and CHERRIES are rolling out of the west Coast! With Chilean PLUMS still lingering, PEACHES, NECTARINES, and APRICOTS are all available out of California. CHERRIES are in good supply out of California, with Washington supplies a few weeks away.

BELL PEPPER prices are running higher next week. Several major retailers are running ads on colored bell pepper, gobbling up a lot of product. GREEN BELL PEPPER supplies are also tight as northern Florida production is light and Georgia is just getting going this week.

RED and GREEN GRAPES are starting up in Mexico and California. We will have another week or so left on Chilean product, and will look to move out west after that.

More as it happens,

Parker Tannehill