MARKET UPDATE WEEK #41

Good Afternoon,

There have been a few rumblings of ICEBERG LETTUCE getting into better supplies this week, but market pricing is still holding on just above $40 down here in Miami. As we expected, ROMAINE took a big jump this week following ICEBERG north of the $40 mark. The two are substitute goods, so when one gets into a supply shortage, the demand on the other will increase. The talk of the lettuce market coming off is still just talk for now, but things might get a bit better next week. We expect a slight bit of relief, but for things to stay tight until we get through transition.

This year looks like a great year for APPLES! Weather during the growing cycle was the best that growers have seen in the past few years. Quality and supplies are great out of both Washington and Michigan.

TOMATO supplies are drying up in N. CAROLINA, VIRGINIA, GEORGIA and other central US growing regions as we transition down south. FLORIDA is not expected to have substantial volume until around the second week of November, leaving us in a gap between growing regions. Mexican supplies are also seeing some difficulties from recent stormy weather. TOMATO markets should remain active throughout this transition.

MELON markets are still getting stronger. With HONEYDEWS all but wrapped up out of the San Joaquin Valley, CANTALOUPES are barely hanging on to the increased demand. Harvesting out in the desert has been very limited resulting in short supplies on CANTALOUPES and HONEYDEWS.

BROCCOLI and CAULIFLOWER bounced right back up as you can see from this week's pricing. California has been very slow to produce significant numbers on either commodity, especially cauliflower. Broccoli bunches are in decent supply, with some shippers having inventory to sell, but CROWNS are short throughout all of California. Product out of Mexico and Maine will be used to supplement during the shortage.

We are entering a time of year where many of the growing regions we are working with are finishing up for the season. Transitional periods can be tough on price, availability, and quality. On the other side of the difficulties, we have the winter season; where Florida will be in full swing and product will be right in our backyard. Better shelf life and transit times are right around the corner!

More as it happens,

Parker Tannehill