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Fresh Produce Market Update For 1/29/18

Fresh Produce Market Update For 1/29/18

Potatoes

Idaho: Potato demand in Idaho is moderate and prices are steady with some count cartons moving slightly higher. Burbank carton prices continue to be around $1.00 per case higher than Norkotahs. Truck and rail shortages continue to plague shipments.

Colorado: Demand has slowed somewhat which is typical for this time of year in Colorado. FOB prices are steady but transportation costs are keeping delivered prices high.

Washington: Prices in Washington are stable unless the shipperĀ is in very large or small lots where there is some variation. Otherwise, demand is moderate to slow. Freight continues to be a problem.

Wisconsin: Demand for potatoes is moderate but some shippers are raising FOB prices due to a shorter than normal supply.

Onions

Idaho/Oregon: The onion market is steady but transportation continues to be a problem. Some shippers are beginningĀ to see the end of the supplies. By the first of March, we expect to see some shippers winding down for the season. In most cases, this a month early. In the last week or so, we have also started to see onions showing minor issues.

Washington: The availability of RailEx has helped Washington, but RailEx has had its own issues with transportation so some shipments have been delayed. The market is steady with little or no variation and the quality is good. We expect to see minor relief in the truck situation starting this week.

Utah: There’s no change in Utah’s onion market. Quality remains good. They’ve maintained about a dollar premium on the Idaho/Oregon market. Some of the smaller shippers are winding down for the season, but large shippers have at least a month to six weeks left.

Colorado: Smaller shippers are starting to finish up or have finished but the larger shippers have a couple months left.

Mexico: The Mexico and South Texas market is getting started with better volume this week. The market is strong with limited supplies. Prices are generally $3 – $4 higher than Idaho/Oregon on large yellows. Mediums are a couple dollars higher. Whites are about the same as they’ve been shipping for a couple weeks. Reds are about 10-14 days out. Trucks from this area are good into the South and lower Midwest but East and upper Midwest are still tight.

Transportation

The national truck situation continues to be an issue with freight rates being reported at 20% – 30% higher than one year ago. Many fear the prices are directly linked to the ELD implementation and a new shortage of drivers as operators leave the industry because of the new federal regulations.

There are also issues with a driver shortage in the Southwest due to crackdowns on drivers who are licensed in Mexico but not in the U.S., and there aren’t enough American drivers to fill the void.

As the 90-day temporary waiver for agricultural commodities ends in just over 6 weeks, there are concerns there will be more problems for fresh produce. And as the ELD mandate goes into full effect, there will certainly be even more friction between truckers, shippers, and receivers during loading and unloading.

For more truck, information, contact us.

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