EAST COAST MARKET REPORT
Good Morning and happy Sunday. How are you today? The PMA is almost here and I can’t wait to meet many of you. First for Crenshaw melon update, we should be ready to ship in 7 to 10 days. Sugar is now at 9 and we are shipping 12 or better.
Demand still seems on the light side to me across all markets and there is no light at the end of the tunnel for October. The Jewish holidays this week will definitely decrease demand in NYC, then the PMA the following week is traditionally a quiet week. Then the week of the 2’s that last for almost 2 weeks. IT’s time to put on our selling shoes and promote to increase demand. Most markets are feeling the lack of love pressure and are responding with lower pricing or in the case of limited supplies they are keeping prices steady.
EAST COAST MARKET REPORT
RED PEPPERS – Supplies have declined on the elongated variety, which has firmed up this market. This market has gone from a sloppy $8.00 to $8.95 then 10.95 and there are orders on the books for the upcoming week for 12.95, all prices were for 15’s. Choice are more abundant because we are in older fields before we transition to Coachella. There are two caveats here to see if this market is real. One, Blocky reds were abundant last week and also cheap. If this continues it will give customers the option of going with cheaper, price per pound reds, thus keeping pressure on the elongated market. Two, will demand support these higher prices. This scenario also plays out exactly the same with yellow peppers except those prices are lower than reds to begin .
GREEN PEPPERS – This market is starting to show life again after being near death for over a month, again will be a major influencer of taking this market higher but to say the least it will come off the bottom.
CUCUMBERS – Supplies are up and we are searching for a new level.
SQUASH – If you watched the YANKEES beat the Twins the last 2 days you would notice that everyone was wearing jackets. That is good news for limiting or ending the local supplies of squash. The bad news is you don’t have to travel too far down the East coast to find warmer weather and yes, more squash. Mexican squash for the most part has not been up to its normal quality, short, stubby and not fancy, which is usually the case when the deal starts. This week we will see improved quality and stable pricing BUT for the pull from the East to be significant there has to be demand and without it there will be downward pressure on this market as well.
ROMA TOMATOES Market is $10-12 fob. One thought here on the suspension agreement. A smart man once told me “ Paul if you can’t figure out a given situation throw money into the scenario and it will become clear” Well I threw money at the Florida growers, whom are also Mexican tomato growers and their zeal for the new BS suspension agreement. The results are now obvious, it is to raise the prices of their inferior tomatoes as well as the tomatoes they grow in Mexico. They want to limit and bottleneck the Mexico Tomato supply chain so they can force higher prices and their product. My hope is that large retailers will now use their clout with their politicians and fight back. The dumping claim was BS from the start and as I have predicted this will not be the end of it and they will try to protect more products in the future. Also, I am wondering what they will they do if other countries start growing tomatoes in volume? Will they make the same BS claim? Government and produce do not belong together!
WATERMELONS _ Heavy rains in Mexico all but stopped production until the fields dry out.
HARD SQUASH have started out of Mexico, for that matter they never ended. We also have beautiful Kabocha from Canada.
AVOCADOS - Still the same but demand is putting s=downward pressure on this market. I have organic Avocados available for spot buying as well as programs.
Picture are Crenshaw melon field, 1 melon, red peppers being packed on Saturday, Sprouts knowing how to sell produce, Thor and Blitz
Have a great week! I will be leaving for California next Sunday and will be there until the following Sunday. Lots of video from the PMA so stay tuned.