varieties of vegetables

MARKET REPORT – May 22, 2019

WEATHER UPDATE

A series of cold, upper-level low-pressure system is once again set to move into California into early next week with cold temperatures (10-20 degrees below normal) strong winds along with scattered showers and thunderstorms. This is a fairly unusual set up for May that looks to continue into early June. Near to slightly below seasonal average temperatures along with isolated showers and thunderstorms (mainly in the higher elevations )are forecast across Central Mexico into early June. To the north, we will see breezy conditions this week as the storm track passes to the north with gradual warming over the weekend into next week. High pressure strengthens over the Southeast with warming temperatures and dry conditions through next week.

FREIGHT UPDATE

California trucks are currently steady but should tighten up next week. There will be a lack of loads headed west due to factories being closed for the Memorial day weekend. Washington apple trucks are steady. Idaho potato and onion trucks remain steady as well. The national average on diesel is steady this week and is currently at 3.163 per gallon. California prices also remained steady and are currently at 4.145 per gallon. Crude oil prices rose slightly and are currently at 62.54 per barrel.

WHAT YOU SHOULD KNOW

Avocado (Mexican): The industry has seen a recent strengthening in field pricing resulting in a stronger market. We could see the market come off slightly but should remain strong through the summer.

Berries (Strawberries): Multiple rain events causing berry shortages

Cherries: Rain has forced an early end to the CA season.

Grapes (Green): Markets are higher and supplies remain very limited.

Grapes (Red): Supplies are lighter this week. New harvest market prices are higher.

Potatoes: Idaho 40-70 count Burbank markets are rising quickly. Advanced orders are needed to ensure full coverage.

Stone Fruit: Rain has slowed production. Some prices are higher.

Tomatoes (Western): The Department of Commerce has officially terminated the 2013 Suspension Agreement for Fresh tomatoes from Mexico, setting a 17.56% duty on Mexico tomatoes arriving in the United States. According to the Department of Commerce, Customs and Boarder Protection will begin the collection of cash deposits or bonds in the amount of 17.56% of the value of product entering the U.S. unless or until a new deal can be made between the U.S. and Mexico. As of last week, Mexico has refused the May 10 proposal made by Florida growers requiring negotiations to continue until a deal can be struck.

TRANSITIONS & TEMPERATURES

Cherries: Pacific Northwest will start mid June.

Grapes (Red): Coachella will start later this week with light harvest. Mexico will ramp up.

Grapes (Green): Coachella will get started later this week.