Heavy Rain Saturates West Coast
Iceberg Lettuce is being affected by wet weather

Heavy Rain Saturates West Coast

BY Mark Campbell, CFA

ProduceIQ Index:? $1.30/pound, down -1.5 percent over prior week

Week #7, ending February 16th


California can’t shake the gray. The deluge and flood risk should lighten up by Tuesday, but there is a high chance of isolated showers continuing through Wednesday. Later in the week, that same system of storms is forecasted to bring more rainy and wintery weather to the East Coast.

How will the last few weeks of wet weather impact the state's snowpack and reservoir levels? Data shows that the snowpack is still lagging behind the average, but with more moisture in the long-term forecasts, levels will likely catch up in March.?

As a result of heavy rain and cooler temperatures in the West, lettuce markets are experiencing some quality issues. Yields are down for iceberg, romaine, and tender leaf commodities.

Prices are on the rise. Iceberg is up +26 percent over the previous week, and romaine +9 percent. Quality issues such as rot, blistering, yellowing, and epidermal peel are heavily reported. Expect prices to escalate this week as growers endure another round of rain.

Iceberg (24ct film-wrapped) prices reach $18 and enter a period of seasonal volatility.
Iceberg (24ct film-wrapped) prices reach $18 and enter a period of seasonal volatility.

?Despite challenging growing conditions, bell pepper prices are down over the previous week. Increasing green bell supply is alleviating pressure for overextended markets. However, colored bells are still extremely tight. Week #7 yields from Florida are down approximately 30 percent over the previous year but aren’t entirely at fault. Floridians are shivering through their own rainy and cold weather. Yields from both Florida and Mexican growers are noticeably below the historical precedent. Supply should slowly improve over the next few weeks.

Green bell peppers (XL) fall below $30, the highest price since 2016
Green bell peppers (XL) fall below $30, the highest price since 2016

Rain in Mexico and cooler-than-average temperatures in Florida are suppressing round tomato yields. At $23, round tomato prices are at a ten-year high. Prices seem on track to replicate and maybe surpass 2020’s historic February prices.

Tomato prices (5x6, 25lb from East Coast) are at record highs, $27
Tomato prices (5x6, 25lb from East Coast) are at record highs, $27

?No, you aren’t seeing things, those cherries are on sale at your local retailer. The second-largest Chile export season on record has pushed prices to a ten-year low. Enjoy this rare opportunity for promotion on an out-of-season commodity.

https://www.produceiq.com/index

Visit for buyers or for suppliers page to discover how our online tools can save time and expand your reach.


Bio

Mark Campbell is an industry veteran with over 25 years of produce experience. After earning his MBA from Columbia Business School, he spent seven years as CFO for J&J Family of Farms. He later served as CFO advisor to several produce growers, shippers, and distributors. In this role, Mark saw the impediments that prevent produce growers and buyers from trading with greater access and efficiency. This led him to cofound ProduceIQ.


ProduceIQ is a digital toolset designed to improve the produce trading process for buyers and suppliers. We save you time, increase your profits, expand your network, and provide valuable information.

要查看或添加评论,请登录

ProduceIQ的更多文章

社区洞察

其他会员也浏览了