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The Source

AUAI

THINGS YOU SHOULD KNOW:

COMMODITY ALERT:

Offshore melons still very large

Domestic red grapes are done

January 7, 2013

Š 2013 PRO*ACT, LLC

LLC

Weather: Tim Lynch An existing cold front will move through the desert locals today as high pressure brings a brief warm up to the west through mid week. Strong winds will impact the entire western growing region this week as more storm systems enter the mix. Low temperatures and strong winds will also impact California’s Central Valley citrus crop and young seedlings planted for spring in the Salinas Valley along with strawberries in the Southern California region. Extended forecasts show a series of storm systems rolling into the western growing region through early January keeping temperatures below normal for the extended period. Forecast models differ on the track of these systems however cooler temperatures with potential morning frosts and breezy conditions are expected as these systems impact the various growing regions.

West coast offshore red grapes not available, extremely limited

Extreme cold temperatures in Idaho, potatoes are limited

Small Granny-Smith & small Gala apples are extremely short

Extreme, continual cold weather has caused row crop items to be very scarce.

Freight: Mike McIntire Trucks in California seem to have loosened up this week. We will see better availability on trucks in the Northwest and Idaho as the week progresses. Crude oil remained steady and is currently 92.92 per barrel. The national average remained steady last week at 3.918 per gallon and should remain steady when it comes out later today.

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Commodity Updates APPLES/PEARS John Tole New York is packing Empires, Golden Delicious, Red Delicious, Rome’s, and McIntosh but expect lighter supplies again this week. They also have limited numbers of Courtland’s. All New York varieties are large except the Macs which are small. They are expecting to finish packing in mid March or possibly sooner. Washington Reds continue to peak on size 88/100’s with high color. Small lower grade reds remain very short. Golden Delicious are also heavy to the 88/100 sizes and the Washington extra-fancy grade. Lower grade Golden’s are more available than many varieties but are still limited. Granny-Smiths are still heavy to the higher grades and size 6480’s. Lower grade Granny availability is extremely low especially on 88’s and smaller. Small Granny-Smiths may be the shortest item in Washington right now. Gala’s are still producing more of the Washington extra-fancy grade and continue to peak on 80-100’s. Gala demand is very strong and many shippers are sold out of them!! Washington Fuji’s are heavy to 64/72/80’s and are producing more of the Washington extra-fancy grade. The Washington Fuji volume I up this year so look for potential deals there. Pink-Lady’s, Cameo’s, Jonagolds, Braeburns, Rome’s, Jazz, and the other varietals are all still available. Washington D’Anjou's are heavier to the larger sizes and the US#1 grade. Washington Bartlett’s are still producing mostly 110 and larger fruit and are heavier to US#1 grade as well. Bartlett supplies are light on all sizes. Bosc and red pears are still available. ASPARAGUS Gabe Romero/Mike Pacheco This market continues to be extremely active on all sizes. Due to unfavorable weather conditions in Mexico, the availability of this item will be scarce for the entire week. Peruvian grass is available in LA but supplies are being sucked up quickly due to a lack of production in Mexico. Place orders as soon as possible. If loading is an option in Miami, Peruvian grass is in light availability over there. AVOCADO Tim Kelley Mexico continues with good volume. We are seeing some limited supplies of Chilean fruit on the market. Mexican fruit remains the major supplier and remains aggressively priced.

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Commodities at a glance… Commodity

Quality

Market

Excellent

Higher

Good

Higher

Excellent

Steady

Good

Steady

Good Good Good Good Good Fair Good Fair Good Good Good Good Good

Steady Steady Higher Steady Higher Higher Steady Higher Higher Higher Steady Steady Steady

Eggplant

Good

Steady

Grapes, Green Grapes, Red Green Onions Lettuce: Leaf Lettuce: Iceberg

Good Good Fair Fair Fair

Steady Higher Higher Higher Higher

Melons: Cantaloupe

Good

Higher

Melons: Honeydew Onions Pears Potatoes

Good Excellent Good Excellent

Higher Higher Higher Steady

Squash (Western)

Good

Steady

Squash (Eastern) Stone Fruit Tomatoes (Western) Tomatoes (Eastern) Watermelon

Good n/a Good Fair Good

Steady n/a Steady Steady Steady

Apples Asparagus Avocado (Mexican) Avocado (California) Bell Peppers (Western) Bell Pepper (Eastern) Berries: Strawberries Berries: Raspberries Berries: Blackberries Berries: Blueberries Broccoli Carrots Cauliflower Celery Citrus: Lemons Citrus: Oranges Cucumbers (Western) Cucumbers (Eastern)


Commodity Updates Z BELL PEPPERS Western Bells: Jaime Contreras Green bell market is slightly unsettled; some indications market is moving upward on large fruit. Southern California is wrapped up. Increasing crossings through Nogales; sizing will be more toward medium and choice; supplies are more than adequate on these sizes. Last and latest weather disturbances have hampered production in some growing areas. Open field colored Red bell market is steady but still light supplies. Growers are anticipating slight increase in production as new ranches come online. Coachella/Thermal California are currently shipping light volume. Demand exceeds market. Open field colored bells to started crossing through Nogales. Last and latest weather disturbances will hamper production in some growing areas. Gold bells are settling and adequate supplies. Eastern Bells: Janine Baird The pepper market remains steady and, barring foul weather, should remain so for the balance of the week. BERRIES Mike Gorczyca Strawberries: Light demand and supplies out of California is causing a slightly weaker market. California strawberry growing areas did receive some light rain over the weekend which will hurt quality slightly. Expect light color fruit arriving out of California due to the rain and cold weather we have been getting this last week and half. California supplies will still be limited till the middle to end of January. Quality out of California is good on the Spring Crop which is loading out of Oceanside, Coachella and Irvine. Oxnard quality is still fair. Supplies are building out of Florida and Mexico with a weaker market and good quality. Raspberries: Demand is picking up as supplies are dropping which has this market firming up. Quality is being reported as good to fair. Blackberries: Supplies have also tightened up but demand is light which is keeping this market steady. Quality is being reported as good. Blueberries: Moderate supplies and better demand is causing a slightly stronger market. Quality is being reported as good. The main pack size is switching into pints with a few 6oz being packed.

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continued

BROCCOLI Gabe Romero/Mike Pacheco This market is very active on bunched product as well as crowns. Shippers are gapping due to the adverse weather conditions over the past four weeks in Yuma and Santa Maria. Demand exceeds supply. With cold weather, pin rot is a usual characteristic that is seen so please be aware. Supplies will be light throughout the week, and pricing is expected to rise. CARROTS Tim Kelley California carrot supplies are lighter. Demand is much better as other growing regions finish for the season. Market is firm. CAULIFLOWER Gabe Romero/Mike Pacheco This market is active on all sizing. Supplies will be light throughout the week. There continues to be issues on spotting seen upon arrivals so please beware of this. Suppliers have caught up on sixteen counts making all sizes very light in availability. CELERY Gabe Romero/Mike Pacheco This market is active on all sizing. The smaller sizes, 36s and smaller has better supplies than larger sizing. The supplies on 24 counts are light in availability. Santa Maria and Oxnard are the areas of production, with light availability coming out of Yuma. CITRUS Tim Kelley Lemons: The Desert crop volume is good. Size is switching to more of the larger sizes (115’s and 95’s) with 165’s and 200’s lightening up with normal seasonal growth. Quality is good. Market is firming on smaller sizes. Oranges: The Navel crop volume is good, but rains and morning fog has tightened supplies a bit. Gas time is down to 24 hours or less and should be moving down from there over the next few weeks. Fruit is testing well and color is improving with the cooler nighttime temps that growing areas are now getting. Fruit is currently packing on heavy to the Fancy grade and peaking on the smaller sizes. Limes: Supplies are fair with some quality issues showing up due to past rains in the growing regions in Mexico. The marked is firming.


Commodity Updates Z CUCUMBERS Western Cucumber: Jaime Contreras Market is very unsettled; production has been interrupted by latest weather fronts. Cool and some rainy weather have interrupted harvesting and therefore supplies are light for the next week. Eastern Cucumbers: Janine Baird With the domestic crop coming to an end and multiple quality issues arising, the cucumber market is tightening up. Pricing on the first shot of off-shores is typically high but we should see it soften up by the weekend.

EGGPLANT Western Eggplant: Jaime Contreras Market is settling increasing supplies crossing through Nogales; excellent quality. Adequate supplies impending weather disturbance may slightly interrupt harvesting. Eastern Eggplant: Janine Baird The eggplant market is very unsettled this week. Availability, price and quality are all hit and miss, depending on the shipper. GRAPES: Amy Grolnick The Chilean red grapes are available on both coasts but remain limited. Most reds are running very small, 500 code and smaller. The west coast is selling the vessels out before they port. We should see availability out west tomorrow and Wednesday but by the end of the week they will most likely be cleaned up on red again. There are several varietals of green grapes around from Brazil, Peru and now Chile. The green grape prices have a very large range depending on country of origin and varietal on the green grapes. Chile has the best quality and largest fruit. Red Globe is available with good quality.

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twelve week averages. Romaine issues include blister and epidermal peel due to excessive days of cold weather. Overall, green and red leaf has become stronger in the marketplace. Blister and peel will also be factors hindering the quality. LETTUCE Gabe Romero/Mike Pacheco There is strong activity with this commodity. The cold weather has hindered supplies severely with all shippers. The weights on the palletized lettuce have fallen off to 37-40 pounds. Demand exceeds supplies. There continues to be some complaints on mechanical damage and pink ribbing. Yuma continues to be the main growing area for this commodity. MELONS: Amy Grolnick Cantaloupe: Offshore fruit is coming in with better volume. There is a little better availability of small fruit as fruit is peaking to 12’s now. However the large fruit is getting extremely limited. Pompano area has good availability. The west coast now has good availability as well. Honeydew: Offshore fruit is becoming limited as they get into the next cycle. Mexican fruit with some hit and miss quality issues. The market is strengthening.

GREEN ONIONS Gabe Romero/Mike Pacheco This market is strong. Escalated pricing is in effect on all contracts. Suppliers are very light in availability out of Mexico and this will continue throughout the entire week. The market is active on all sizing. There have been some slime and decay issues reported.

ONIONS John Tole Both Washington and Idaho/Oregon are higher on all yellows and some suppliers are pricing day-of-shipment. Most shippers remain bullish from the potential Korean & Japanese export business, the lower stocks-on-hand, and the lower yields. The current cold temperatures in Idaho aren’t helping the market since most packers have to haul raw product from their storages. Washington is still producing mostly jumbo and medium yellows while Idaho/Oregon is peaking on jumbo yellows. Reds are also higher in both areas and the market remains stronger because the storage numbers are lower. Whites are higher in both areas due to lower availability. The quality has been good in both areas and all colors.

LEAF LETTUCE Gabe Romero/Mike Pacheco This market is stronger on every leaf item. Demand exceeds supply. Romaine hearts are extremely light and shippers are watching

POTATOES John Tole The potato market is mostly steady although the cold temperatures have affected the availability on the larger counts for some a few

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Commodity Updates shippers pushing them up slightly. Aside from the larger counts the market is steady on all sizes. The cold temperatures are still an issue but it is supposed to warm up tomorrow through Thursday so most packers will be running hard. Demand for both varieties has been fair to strong. Idaho packers are still split between packing Burbanks & Norkotahs but many have both. 70’s and larger are still the bulk of the Idaho carton production while 80’s and smaller are somewhat limited. Washington is steady to slightly higher on counts and they are also heavier to the larger sizes. The Colorado market is steady on all sizes. Colorado is producing more of the larger counts but they have been covering orders of 80-count & smaller. The russet quality has been good to excellent in all areas. Stockton, California is finished packing whites and gold’s. Bakersfield, California continues packing Gold’s and Whites. Both California varieties are heavier to A-size. Washington, Wisconsin, and Minnesota continue packing red & gold potatoes and they are all mostly steady. All areas have better availability on Asize. Idaho reds and golds are also both peaking on A-size and the availability is good. B-size is limited in Idaho for both varieties. The colored potato quality has been fairly good to excellent in all areas. SQUASH Western Squash: Jaime Contreras Market continues unsettled on both Italian and Yellow S/n and both are on an upward trend. Supplies are improving as new acreage begins harvesting but, some current growing areas are experiencing un-anticipated gaps and/or quality issues. California continues with light production from Coachella, CA, light numbers expected. Last and latest weather disturbances will hamper production in some growing areas. Eastern Squash: Janine Baird The squash market remains strong this week but should loosen up toward the end of the week as the temperatures warm up. STONE FRUIT Amy Grolnick Domestic fruit has finished for the season. There are both Hichiya and Fuyu persimmons and pomegranates available with good availability and quality. Off shore peaches and nectarines are available now.

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continued TOMATOES Aaron Aliotti Western: Vine ripe and Roma production continue to improve in Mexico. Cherry tomatoes remain short with ample supplies of grape tomatoes in the west. Eastern: Florida is in decent production and shippers have a plentiful amount of rounds, Romas and grape tomatoes of good quality. VALUE ADDED Gabe Romero/Mike Pacheco The supplies on lettuce are light. The Romaine supplies are limited as well. Broccoli supplies have tightened up severely. The cauliflower supplies will be light throughout the week. Processors will be watching very closely to twelve week averages on all broccoli and cauliflower items. WATERMELON: Jaime Contreras Market is settling. Demand exceeds on s/less watermelon. We anticipate lightening supplies as Northern growing districts play out and wait for Jalisco districts to start. Most availability will be in cartons. Availability on seeded watermelon is sporadic. Seeded W/melon crossing through Nogales, supplies are improving as other growers start harvesting from the Southern district of Jalisco.


The Source 01-07-2013