Market Outlook - August 29, 2019

As we move into fall harvests, weather patterns look to continue to disrupt production in the various regions. As hurricane Dorian builds in the warm Atlantic waters, Florida prepares for what is likely to become a major hurricane (Cat 3 and above) when it arrives over the weekend. The track is still not conclusive at this time, but we will be watching the storm and impacts in the region.

Over in the Eastern Pacific tropical moisture has produced weeks of heavy rains and hail across central and the southwest coast of Mexico. This has created lesser yields, quality, and shelf life throughout the region. The extreme wet conditions and warm temperatures will increase mold, mildew, and internal burn problems in the fields with insect populations on the rise as well. A drier pattern has set up for next week however longer range forecasts bring a wetter pattern to these regions the 2nd week of September.

In the Salinas Valley, high pressure builds into the weekend ushering in a warming trend into early September. Above-average temperatures and warm overnight temperatures (the mid-50s) look to continue through the period. These temperatures will continue to advance growth rates and increase mold and mildew pressure in the fields already ahead of schedule. Insect pressure is on the rise in the Salinas Valley as the surrounding Streams, creeks and hills dry out the critters tend to head to the lush green fields in the valley. As local supplies begin to wind down across the Midwest and Eastern regions, demand will increase for supplies from these regions. All of these factors will contribute to lighter supplies along with lesser quality and shelf life for the near term.