Terminal Market Report April 14 2019
Good morning and Happy Sunday. Last week was very disappointing, business was lackluster throughout the country and to make matters worse I expected a good Easter pull, which did not materialize. I heard complaints from growers, shippers as well as retailers and food service. I am wondering if Holiday business is any different from every week business. I have been around this industry all my life and 20 and more years ago Holiday business was 2 to 3 times the volume of regular business, time to embrace the new normal.
RED PEPPERS Nowhere is the lack of demand more evident than the colored bell market and especially on red bells. Last week based on very light supplies I thought for sure 15# reds would bring $28/$30 for sure. The market topped out, at East coast terminals at $26 towards the end of the week. That was all due to very lethargic demand. Boston did touch $30 on Friday which hopefully will be a harbinger of things to come. Going into this week $26 should be the bottom but not enough profits there and $28/$30 would be much better, this is all dependent on DEMAND. The other caveat is with the non-existent pull gone will prices fall, that remains to be seen and reds did not clean up on Saturday. Lastly to confuse the situation further after Wednesday in Mexico most harvesting ceases due to Semana Santa. My conclusion is the market stays $26 and hopefully higher for this week. But will fall after the Holiday.
YELLOW PEPPERS This market is also off it’s highs and searching for a new lever.
ORANGE PEPPERS Still holding on
GREEN PEPPERS Green peppers are in Mexico, California and Florida this market will be lower and could be ½ of what it was 2 weeks ago.
GREEN SQUASH. This market is at the bottom and may be helped short term by less harvesting BUT then there will be a plethora of squash. Terminal maybe $12 but $10 in the cards too.
YELLOW SQUASH. Too many markets will be lower. $12 to 14 tops
EGGPLANTS. This all depends on quality, but prices were lower across the board.
CUCUMBERS – Too much volume for the demand. Market is $10.95 to 12.95 which translates to $20/$22 at the terminal level or less.
ROMA TOMATOES – Prices have come back to where they belong, $8.95 and I don’t think back to the minimum is not far behind, probably Monday. Hopefully on May 7ththere is no more minimum, and tomatoes will be sold on their own merits. The market is more efficient than a government control.
LIMES The looked like they were heading lower and turned around and went higher on good demand and short supplies.
On another note which could affect markets dramatically is border crossings. It is not uncommon for trucks to wait 2 or 3 days to cross which will have an impact on supplies. Be aware of shortages that may show up at any time.
I now have available 5 to 8 loads a week of high-quality broccoli from Mexico. This is something new for me, I stopped selling Western Vegetables about 30 years ago We will be loading Broccoli and Cilantro in Texas. I will also have organic Brussel Sprouts. I would appreciate your support with these new items. Thank you and have a great week.