MARKET UPDATE WEEK # 24

Good Afternoon,

Wow, how time flies! We are already approaching week #26 of 2019 and with that, we will see the first official day of summer this Friday, June 21st.

Although we don't officially start summer until tomorrow, it sure feels like we are in the middle of the season. MELONS and GRAPES have started in California, CABBAGE and EASTERN VEG has moved into the Carolina’s, and CANADIAN LETTUCE and ROMAINE are just a few weeks out! Oh, and we cannot forget that STONE FRUIT and CHERRIES are in great supply and market prices are moving down!

With all of the profits of summer, there will still be a few hitches along the way and we can't forget about the major obstacle, HEAT. The temperatures we have mentioned the past few weeks continue to do damage on several different commodities.

STRAWBERRIES are a week away from a major shortage. DRISCOLL'S sent out a crop update today informing their customers of a 35%-50% shortage over the next 3-4 weeks. Wet and hot weather impacted blooms by bringing on green and malformed fruit. This shortage will most likely be common among all strawberry shippers in Northern California.

The heat also affected the CABBAGE market severely. However, after a two-week gap, we are now seeing supplies pick up. Georgia was basically wiped out but supplies in North Carolina are coming on strong and market prices returning to normal levels.

LETTUCE and LEAF markets are in a demand exceeds situation. Suppliers are dealing with internal damage and rusting on both LETTUCE and ROMAINE. This is an industry wide issue that should start to get better over the next week with a favorable forecast lined up. However, PLEASE BE CAUTIOUS and make the effort to not hold on to any lettuce or leaf product too long.

The supply on AVOCADOS has hit a drastic low this week. As I am sure most of you have seen on the price list, prices have been very high but believe it or not, they will continue to climb this week. We are in a strong gap between old and new crop harvests leaving supplies to fall well short of demand. Markets will remain strong until new crop supplies get to peak season which may be several more weeks.

FREIGHT RATES are climbing weekly and trucks out of California are VERY TIGHT. Like we mentioned in the last update, there is a ton of demand for trucks and the supply is just not there. Carriers are naming their price and we have seen plenty of rates hit the $9,000 mark. This trend will continue through the first few weeks of July and hopefully come back down from there.

More as it happens,
Parker Tannehill