MARKET UPDATE WEEK # 37

Good Afternoon,

We continue to see rain events in MEXICAN AVOCADO growing regions. Demand on small fruit is very strong, unfortunately, as the supply on sizes 60 and SMALLER is very weak. AVOCADO markets have been elevated for a few weeks already and things will remain tight into October.

Both major STRAWBERRY growing regions, SANTA MARIA and WATSONVILLE, experienced major HEAT WAVES this past week, followed by RAIN. As typical this time of year, STRAWS have been tough to keep up with. The combination of temperatures over 100 degrees and precipitation will cause soft fruit that is easily damaged or bruised. YIELDS as well as QUALITY will be an issue for the next several weeks. As we get closer to the end of the year, LATE NOVEMBER can't come soon enough, when Florida Strawberries become available.

We have mentioned BROCCOLI in the last few market updates but is important to note that this situation has not gotten any better. MARKET PRICING has kept RISING as SUPPLIES continue to GAP. There are still no signs of improvement, but we will keep you updated weekly.

LETTUCE and ROMAINE are dealing with the same levels of heat as the BROCCOLI and STRAWBERRIES. We are seeing some bruising and rib discoloration. Markets are getting slightly stronger on lettuce but we remain in good supply as of this week. CANADA has another THREE to FOUR weeks left and then EA LETTUCE will gap until Florida starts in the winter.

Domestic TOMATO volume is light as demand remains steady. Supplies out of MEXCIO and CALIFORNIA are helping the market stay competitive, but we are still seeing some drop offs in supply on the east coast. As we transition back south down the eastern seaboard, production forecasts on new fields will give us a better idea of where TOMATO markets will end up.

STONE FRUIT volumes continue to come off weekly. We are looking at the end of the season and there is probably only another week or two left. PLUMS may last a bit longer through OCTOBER, but only time will tell. As the season winds down, prices will get higher with lighter supplies.

YELLOW SQUASH and ZUCCHINI are in GOOD SUPPLY. We are seeing product from several different growing regions whom are all competing for market share. This race to the bottom in price has given us a nice break and makes YELLOW SQUASH and ZUCCHINI great items to special next week!

More as it happens,

Parker Tannehill