MARKET REPORT – October 31, 2018

WEATHER UPDATE

A strong high pressure system building out west brings offshore flow and above average temperatures to Central California through the week. An exiting low to the south brings slight cooling from northern Mexico and to the southwestern desert regions along with strong winds to Southern California. Central Mexico will see mostly dry conditions and seasonably warm temperatures into next week. A frontal system moves into northern Florida late this week with rain and cooler temperatures into the weekend. a couple of stronger systems look to follow early next week.

FREIGHT UPDATE

California trucks remain adequate with rates remaining steady. Look for capacity to remain steady throughout the Salinas season. Washington apple truck supply is adequate as well. Idaho potato and onion trucks remain tight with rates increasing. The national average on diesel remained steady this week and is currently at 3.355 per gallon. An increase of .536 from this time last year. California prices are steady as well and are now at 4.074 per gallon. Crude oil remained steady this week and is currently at 66.02 per barrel.

WHAT YOU SHOULD KNOW

Apples : The smaller size fruit in all varieties is extremely limited as suppliers are not risking opening up controlled atmosphere rooms to run bins in order to cover orders. Subbing into larger sizes will be the theme this year.

Berries (Blackberries) : Supplies are still limited due to the storms in Mexico last week. Availability is better in Texas than California. We are seeing split markets.

Potatoes : Transportation starting to tighten up as we enter the Thanksgiving holiday pull.

Potatoes (colored): Transportation starting to tighten up as we enter the Holiday Season. This will continue through the New Year.

TEMPERATURES AND TRANSITIONS

Lettuce Leaf : Yuma is expected to begin leaf production in a few weeks.

Lettuce Iceberg : Yuma will begin production in a light way starting the end of this week.

Berries (Strawberries) : Domestic harvest will transition to Oxnard over the next 2 weeks. Salinas / Watsonville will trend down. Mexico will ramp up slowly. Florida will start late November.