Tuesday, December 4, 2012

Weather and pricing

What do Yuma, Arizona and southern Florida have in common, besides being the winter growing areas for most vegetables produced in the US?  Right now, the weather in both places is Chamber of Commerce perfect.  This leads to the second point of commonality;  low prices for said produce.  Usually, bad weather, i.e. frosts, excessive heat, torrential rains in one area leads to higher prices in the other.  Right now, beautiful weather in both areas is a drag on pricing.  Add lack of demand which is traditional in the time after Thanksgiving and you have a trifecta of bad.  It seems all the bad weather is occuring in places where the commodity crops such as wheat and corn are or will be planted.  Texas is sliding back into drought mode again.  This may have some effect on veg pricing, but compared to Florida and Arizona, Texas has little to say in this regard.  If the weather affects imports from Mexico, then we may see some increases in winter veg pricing, but for now it is a tough sell.

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