MARKET UPDATE WEEK # 13 - 2020

Good Afternoon,

Our first day of spring came and went, overshadowed by the troubles of the COVID-19 pandemic. Retail demand continues to surge as fearful shoppers clear out grocery stores daily. Foodservice business has been almost entirely removed from the equation, besides takeout and delivery orders. We are seeing people clear the shelves on POTATOES, CITRUS, APPLES, GINGER, GARLIC, and other durable items, leaving shippers tight on product.

Aside from the isolation and self-quarantining, conditions have been favorable in most growing regions. Weather has gotten better in MEXICO over the past few weeks, which may help some markets that were previously struggling.

RED, YELLOW, and ORANGE BELL PEPPER have been beneficiaries to the recent conditions in Mexico. Harvests in new growing regions are picking up but with a strong retail demand, we are seeing markets remain competitive.
Even with the recent good fortune, some products out of Mexico are still going to take longer to recover.

LIMES and TOMATOES are still seeing supply issues but with the foodservice industry being a huge player on these items, pricing is still reasonable.

A cool spurt is heading into California just in time for transition. As you would expect, this cold front brings a welcoming wave of rain with it. Harvests are just getting going in Northern California so we will have to wait and see what the impact is.

LETTUCE and LEAF are not what you would buy and bring into your doomsday bunker. While we are not in a world ending scenario, the psyche of the average consumer has hit survival mode. The hard goods have been wiped out but the shelves remain mostly stocked with salads, lettuce, and leaf items. We are seeing some limitations on supply through transition, but with a weak demand, availability should be consistent.

CAULIFLOWER and CELERY markets remain strong! CELERY is doing okay out of California, but Florida supplies are nearly dried up. CAULIFLOWER has struggled out of the desert this season. Cool temps and wet conditions have made it tough on growers. With warmer weather on the way in Arizona and a possible drop in demand, there is a chance this market rebounds sometime soon.

Overcast skies and precipitation are in abundance in Florida today. GREEN BELL PEPPER, YELLOW SQUASH and ZUCCHINI markets all remain tight! After the rain passes through and the cooler temps start, we may see further supply shortages.

GRAPE markets are still holding on strong with a lengthy end to the import season. After import volumes drop significantly in the next few weeks, there may be a gap in production before Mexican harvests become available.

Stay safe and healthy everyone - We will get through this!
Parker Tannehill