Market Update For Strawberries
Week of June 14 – June 20
Growers in Watsonville seem to be increasing production each week. With warmer temperatures expected, we should see very good pack-outs over the next 10 days. We’ve seen steady numbers from both Watsonville and Santa Maria with combined volumes hovering just over 1.3 million daily flats per day. Last week, the spot market fluctuated with FOB’s dropping from $9-$10 mid-week, and firming back-up with most growers sold out heading into the weekend. With warmer weather expected in Santa Maria and condition already on the decline, shippers will likely choose the freezer as the safest option to avoid rejections. Watsonville’s increase production should balance off the lower numbers coming from Santa Maria and keep the market stable. Look for the spot market to open this week from $10-$12 and possibly settle back to $10 by the weekend. The freezer continues to offer growers a safety net, so once the fresh market drops below $10, look for growers to direct extra volume that way.