MARKET UPDATE WEEK # 23

Good Afternoon,

It's feeling HOT, HOT, HOT! Things are sure heating up in the first few weeks of June. Typical summer weather patterns of rain and heat have done some damage on a few different growing regions. CALIFORNIA and GEORGIA have recently seen temperatures nearing, and in some cases above, 100 degrees Fahrenheit (38 C). LEAFY VEG, CABBAGE, and PEPPER are just a few commodities seeing some volatility this week due to the heat snap.

The intense heat has led us to some upside-down markets. On the west coast, STRAWBERRIES, LETTUCE, ROMAINE, and PARSLEY have been affected by the unseasonably warm temperatures. Along with tender veggies not being able to withstand the intense temps, the heat also brings on a labor problem. When temperatures reach a certain point, shippers shorten the amount of time laborers will stay in the fields. While the field teams safety is the primary concern, we are seeing some market activity due to the labor shortage. Loading times have increased greatly as shippers have to wait much longer for normal volumes to be harvested. The domino effect this creates leads to product shortages and higher market prices.

To go along with markets creeping up out west, we are also dealing with FREIGHT COSTS skyrocketing out of California. A month or so ago, vegetables made up the vast majority of outbound shipments in CA. Now, we are looking at MELONS, GRAPES, BERRIES, and STONEFRUIT, all needing a ride out of state. With the entire country looking to pull more trucks out of California, and Miami not having much to haul back out, the demand is way up and there is little incentive to get drivers all the way down to the Southern tip of Florida. FREIGHT COST will TREND UP until about the Fourth of July, plateau for some time, and begin to ease from there.

On a lighter note, GRAPE supplies are picking up which has resulted in PRICES coming DOWN. Availability is great out of MEXICO and CALIFORNIA and quality is strong. California product is a bit pricier, but healthy supplies make green and red grapes a great buy for the foreseeable future.

ONION MARKETS ARE TIGHT. Rain in New Mexico has slowed up the start of new crop. With Texas and Mexico supplies basically finished, we are in a demand exceeds situation. Early harvests will start out with crown picks which will be most LARGER sizes. Depending on weather, we should start to see better supplies in a week or two.

CHERRIES are starting up this week in Washington. The forecast for the short season looks to be steady so, hopefully we will see market prices come off over the next weeks as supplies ramp up. We will have 16/1lb clamshells available for sale this coming week!

More as it happens,
Parker Tannehill