News and Stories

The Arizona/California desert season will continue for approximately 11 more weeks before growers make the seasonal transition to the San Joaquin Valley/Huron and Salinas, California. Volatile prices and quality problems are expected to persist in many commodity crops such as broccoli, cauliflower, celery, green leaf, iceberg, and romaine.

Current Supply/Prices

• Abnormally warm weather in November and December pushed harvesting ahead of schedule by several weeks

• Two weeks ago, the region received consecutive days of freezing temperatures that stunted growth, caused a severe supply gap, and pushed up market prices

• Industry-wide quality issues such as epidermal blistering and peeling will persist in leafy green and lettuce items for at least two to three more weeks; expect low yields and carton weights

• Most growers are one to four weeks ahead of schedule, meaning they will run out of supplies before the end of the season

• Industry stocks remain limited, but high prices have weakened demand

o Many commodity markets have peaked at current levels

o Prices are expected to ease in the coming days

Future Supply/Prices

• Mid- to high 70s to low 80s are forecast in the desert region for the next 10 days; freezing temperatures are not expected

• Although in the short term, supplies will increase and demand will weaken, elevated prices will dominate the market until the transition north

• There are three main factors that will impact the rest of the desert growing season

o Temperatures:

• If warm temperatures persist, growth will increase and push harvesting ahead of schedule, resulting in a gap/supply shortages at the end of the season

• If temperatures drop to freezing levels, growth will slow, supplies will tighten, and prices will rise

o End of season gap:

•  If growers remain this far ahead of the production schedule, growers will start harvesting fewer acres in an effort to extend product through the end of the season

•  Persistently high prices will weaken demand

o The San Joaquin Valley/Huron, California Season:

• Growers have historically moved from the desert to the San Joaquin Valley/Huron area for several weeks before they transition to the Salinas Valley

• Fewer growers will make the move to the San Joaquin Valley/Huron for the spring 2015 season due to extremely high water costs

• Most companies have elected to extend the desert season and move straight to the Salinas Valley for an early start (skipping the San Joaquin Valley/Huron region altogether)

• If temperatures are extremely warm in the desert at the end of the season, quality and supply will diminish

• If weather is cold and rainy in the Salinas Valley, growth will be slow and plants will not be ready to harvest

• Because many growers do not plan to plant in the San Joaquin Valley/Huron during the transition period, there is uncertainty in the industry

• Elevated prices are forecast until the Salinas Valley season is fully underway

 Please contact your Markon customer service representative for more information.

©2015 Markon Cooperative, Inc. All rights reserved.