MARKET UPDATE WEEK # 35 - 2020

Good Afternoon,

High temperatures have been a common theme in our Market Update for the past several weeks. This week, the situation went from bad to worse out in California. The SALINAS RIVER FIRE has been wreaking destruction all week, burning up over 10,000 acres as of Wednesday. The fire is right in the main growing region, Salinas, spreading ASH INTO GROWING AREAS and posing a threat to the people of the area as well as the crops. There are several more fires all around the state of California, making it difficult for crews to harvest, and trucks to get in and out of town.

Shippers have already informed us of the possibility of ash on product next week, so please be mindful. In addition to the catastrophic fire, there has been 5 consecutive days of EXTREME TEMPERATURES. Quality has been a struggle with the recent temperatures, and the summer conditions are not letting up. This time of year, California produces our: LETTUCE, ROMAINE, CAULIFLOWER, CELERY, CILANTRO, PARSLEY, GREEN ONIONS, LEAFY GREENS, BOK CHOY, STRAWBERRIES, RASPBERRIES, CITRUS, GRAPES, MELONS, STONE FRUIT, and the list goes on. The extremely hot conditions are affecting the entire state and all suppliers.

ORANGE markets continue to soar. Supplies remain short, especially on smaller sizes, and demand looks to pick up with some schools starting and the FFFB extension on the horizon. FREIGHT RATES are still nearly $10,000 from California to Miami, equal to around $11 per case for oranges.

MELONS, GRAPES, and POTATOES are all finding some relief this week. Volumes are getting better, helping markets get a little more competitive.

Eastern Veg commodities like SQUASH, EGGPLANT, and CUCUMBERS, have settled north in Michigan and Canada. Several shippers in New York and New Jersey have finished up for the season so we are seeing some market activity.

PLANTAIN supplies are extremely tight for next week. Heavy rains in Guatemala have damaged a good portion of the supply, limiting what crews can pack out. Production is also way down due to COVID restrictions. This market is going to be TIGHT for the next few weeks - get your orders in early!

LIMES have been less than top quality the past few weeks. Heavy rain and high temps in the growing region has led to a significant portion of the crop to have some discoloration. Smaller, new crop limes in Texas are showing signs of improvement but we don't anticipate things to get better for at least another week or two. Just like they say about beer, cheap limes aint good and good limes aint cheap!

Local supplies on PASSIONFRUIT and DRAGONFRUIT have tightened up. Growers packed everything they could before the rain, and we are now seeing a shortage in the Miami area.

NEW CROP APPLES are coming up very soon. Some shippers are looking to start this week on early varieties. Stay tuned!

More as it happens,
Parker Tannehill