TERMINAL MARKET AND FOB REPORT
TERMINAL MARKET REPORT
Good morning and Happy Sunday. I guess the flying disrupted my brain this past week, as I did not write the market report. I will incorporate the Terminal Market and the Fob Market report into one report. They should go hand in hand, and one should reflect the other but many times this is not the case.
First, we have to speak about food stamps. Why you may ask, do we need to talk about food stamps when I am speaking about produce?
Because Food stamps, when they arrive at the beginning of the month, we see a big increase in demand and conversely towards the last 2 weeks of the month and especially the last week of the month when the funds are low or maybe nonexistent. This is a major factor, especially in large cities. February demand at the shipping point level as well as the terminal market level has been lethargic at best and falling prices has been the conclusion. What made February so bad from the first week and almost certainly to the last and the last week of January,
Unconventionally good was this. In January when the government shutdown was imminent February checks were sent out early. In turn the end of January was great and not knowing there was not any more checks for the beginning of February, buyers loaded up for the anticipated demand that never arrived. As always DEMAND is the key and with no demand prices fall and they kept falling.
For those of you who don’t know, Terminal markets are located in many major cities. In decades past it is where everyone from large retailer to small purchased their produce. It is still the case today but to a lesser degree as many large retailers and small get their produce direct to their warehouses, but they do fill in with the terminals. Today Terminal markets serve as a relief valve for supply. Large retailers have lost the ability and talent to take advantage of over supply to move more volume and at better prices to the consumer and better margins for themselves. If the computer says I need 83 boxes, they buy 83 boxes even if the price is now half of what it was 1 week ago. That leaves only the terminal market for growers to send their abundant supplies because some money is better than no money and in farming you cant turn the plants off when you have too many. Listen to this USA COMMERCE DEPARTMENT, and MARCO RUBIO sometimes that over supply gets sold below production cost. Ok with this brief understanding let’s get to the markets.
RED PEPPERS – Everyone, including yours truly, thought this market would be higher and it is. The problem is all the terminals stepped in and bought big volume and there was no business to support the volume. Some terminal was selling at prices equal to the quoted FOB.
Peppers were $3.00 FOB a week or 2 ago and are now in the $5.95 to $8.95 range on lower supplies but unfortunately lower demand. Terminal should be $10 - $12 but with some merchants trying to clean up older product some $8 is still in the cards.
YELLOW PEPPERS – Yellow peppers are not as abundant as reds right now and the market is at equilibrium with demand. 15# yellow should bring $15 to $20
GREEN PEPPERS – What had the famine now the feast. 10 days ago I believe Florida was quoting $24.95 FOB a couple of days later $12.95 and you can buy Mexicans for $9/$10 FOB. They picked colored bells green for 3 weeks and now Florida and Mexico have volume.
JALAPENOS - Big and beautiful jalapenos in big boxes generally $20
SERRANOS - $33
CUCUMBERS – Cukes started the week at 16.95 and ended at 12.95. This is not an oversupply problem it’s a no demand problem.
EGGPLANTS –We had some volume here but supplies dwindled towards the end of the week and also sized down. General quote $8.95 to 10.95 for the better labels and as low as $5.95 for off brands and less for #2.
GREEN SQUASH - It has to go up because it can’t do down anymore without giving them away for free. New fields starting and no demand until March, we need some big ads to turn this ship around.
YELLOW SQUASH Same new fields have yellow squash as well as GREY SQUASH. Prices have dropped significantly of their highs and we are searching for a bottom. Yellow in the $10 range Grey in the $7 range
HARD SQUASH -Nothing seems unaffected by this lack of demand. All hard squash with the exception of acorn is feeling the downward price pressure.
ROMA TOMATOES – Stuck at the minimum.
AVOCADOES –Packers are packing less to try and get prices up. Let’s see if they shoot themselves in the foot again.
LIMES. This market should be hot but because of low demand it’s not.
Prices are high and the market can heat up if demand returns.
The pictures on this post are my boys from 7 years ago. Miguel the picture on the left turned 13 on Friday. Cristian and Harold on the right are 17 and 18. They were always my boys but we are going to make it official because I am in the process of adopting all 3. Love is Love.
If you have not viewed my tour of Hunts point market click here for last week’s tour