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The Source

AUAI

THINGS YOU SHOULD KNOW:

COMMODITY ALERT:

Stem strawberries are very limited due to small sizing currently in California

Offshore melons still very large

December 26, 2012

Š 2012 PRO*ACT,

LLC LLC

Weather: Tim Lynch The Pacific storm system currently moving through California will bring rain, strong winds and cold temperatures throughout the state before exiting eastward Thursday. This system is expected to bring strong winds (2040mph) and cold temperatures to the desert regions with just a slight chance of showers into Thursday. Cold air behind this system will keep temperatures well below normal (50s to low 60s) with another chance of freezing temperatures Friday into Saturday. Extended forecasts show a series of storm system impacting 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 and breezy conditions are expected as these systems impact the desert regions.

Domestic green and red grapes finishing up quickly

Small Granny-Smith & small Gala apples are extremely short

Freight: Mike McIntire Trucks in California have stabilized and should be steady with firmer undertone due the Holiday week. Trucks in the Northwest and Idaho remain tight and will most likely remain that way throughout the fall season. Crude oil remained steady and is currently 86.61 per barrel. The national average remained steady and is currently 3.923 per gallon. California dropped slightly to 4.052 per gallon.

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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 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.

Commodities at a glance… Quality

Market

Excellent

Higher

Good

Higher

Excellent

Steady

Good

Steady

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

Steady Steady Higher Higher Lower Steady Steady Steady Steady Higher Steady Steady Steady

Eggplant

Good

Steady

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

Good Good Fair Good Fair

Steady Higher Higher Steady Steady

ASPARAGUS Gabe Romero/Mike Pacheco This market is active on all sizes. Jumbo sizing continues to be unavailable in Yuma, but can be purchased in LA if desired. The holiday pull has left supplies extremely tight for Mexican as well as Peruvian product. Supplies are expected to be light for the entire week.

Melons: Cantaloupe

Good

Steady

Melons: Honeydew Onions Pears Potatoes

Good Excellent Good Excellent

Steady Higher Higher Lower

Squash (Western)

Good

Steady

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.

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

Good n/a Good Fair Good

Steady n/a Steady Steady Steady

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Commodity 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 very unsettled; some indication that market is moving upward on large fruit. Southern California is currently shipping green bells from Thermal and Coachella. 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 will hamper production in some growing areas. Open field colored Red bell market is steady but still very 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 There were very few shippers working pepper at the front of the week which led to higher prices and little to no availability. Rains in Florida have since let up which should bring the market down slightly.

BERRIES Mike Gorczyca Strawberries: California supplies are still limited and will be till the middle of January. California continues to get hit with rain. The cold weather in the California growing area is the main cause which is not letting the fruit color up. Market is steady but firm out of California. Supplies are getting better out of Florida and Mexico. Florida and Mexico market are starting to weaken slightly. A few new areas are starting to break ground in California which is Oceanside, Irvine and Coachella. Supplies in these areas will not be up to speed till after the first of the year. Most shippers are switching to 8/1# berries and subbing for other packs in order to extend their ability to cover orders; as well as protect the quality of the fruit. Raspberries: Demand is picking up as supplies are starting to drop which has this market firming up. Quality is being reported as good to fair. Blackberries: Supplies have also tightened up with a slightly firmer market. Quality is being reported as good.

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continued

Blueberries: Supplies are starting to get better with a slightly weaker market. Quality is being reported as good. The main pack size is 6oz. BROCCOLI Gabe Romero/Mike Pacheco This market is firm with all suppliers. Crowns as well as bunched product will be light to moderate for the entire week. Shippers are heading into a small supply gap. Overall, the quality continues to be good with no major issues to report. 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 firm. Supplies have eased up in Yuma and Santa Maria. There continues to be a few issues on spotting seen upon arrivals so please beware of this. Supplies will be moderate at best for the rest of the week. There are decent supplies on sixteen counts and better pricing is being offered on this size. CELERY Gabe Romero/Mike Pacheco This market is firm. The smaller sizes, 36s and smaller has better supplies than the previous week, and this is where the best deals are to be had. The supplies on 24 counts are light in availability. Santa Maria, and Oxnard are the areas of production for this commodity. 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 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 48 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


Commodity Updates Z

continued

firming. CUCUMBERS Western Cucumber: Jaime Contreras Market is very unsettled; production has increased as well as new acreage coming online but, some older fields are grading down or wrapping up. Cucumbers are crossing through Nogales and are good quality. Supplies are adequate. Holiday season also is factoring in to availability and logistics. Eastern Cucumbers: Janine Baird The market on domestic product remains steady but there is definitely more volume in off grade (select) sizing. Very few shippers have started with off shore product so this market should see no change for the next several days (weather providing).

been reported as being better in terms of bleaching. The cupping is getting better as well. Overall, the green and red leaf has good quality and pricing available with most suppliers. Look for good availability on leaf items throughout the week.

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 continues to drop as Florida ramps up their eggplant deal. Demand is steady and quality is good.

MELONS: Amy Grolnick Cantaloupe: Offshore fruit is coming in with better volume, but fruit is still very large. Pompano area with good availability on the larger sized fruit. The west coast now with good availability as well. Honeydew: Good availability of Mexican honeydew coming in with shippers looking to move the fruit. Offshore has good availability but fruit is still large.

GRAPES: Amy Grolnick The Chilean red grapes have started coming in on the east coast but remain limited. Most reds are running very small, 500 code and smaller. Product will be limited over the next couple of weeks. Product is being transferred from the east to west coast with very limited offshore product coming into the west. There are several varietals of green grapes around from Brazil, Peru and now Chile. The prices have a very large range depending on country of origin and varietal Chile has the best quality and largest fruit. Red Globe are available with good quality.

ONIONS John Tole Northwest yellows are steady on all sizes. Expect light availability this week with only three packing days. Most suppliers are still bullish from the Korean & Japanese export demand & lower stocks-on-hand. Washington is still producing mostly jumbo and medium yellows while Idaho/Oregon has larger size. Reds are in both areas but the market remains strong. Again, because most shippers have lower red storage inventories. Whites are steady to slightly in both areas as the availability is lower. The quality has been good in both areas and all colors.

GREEN ONIONS Gabe Romero/Mike Pacheco This market is very active. Suppliers are very light out of Mexico and this will continue for the entire week. The market is no longer split between sizes. There have been some slime and decay issues reported.

POTATOES John Tole The potato market is a flat line. Idaho cartons are steady on all sizes. We could hit some availability issues due to the short week, but other than that potato supplies remain plentiful. Demand for both varieties has been fair. Most Idaho shippers are still packing Burbanks but several have Norkotahs too. 70’s and larger are still the bulk of the Idaho carton production while 80’s and smaller are somewhat limited.

LEAF LETTUCE Gabe Romero/Mike Pacheco The market is steady, like the previous week. The quality in the desert on romaine Hearts has

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LETTUCE Gabe Romero/Mike Pacheco There is no change on this commodity. Pricing is steady. Deals are being offered on large volume type orders. The weights on the palletized lettuce continue to be steady at 4144 #s. Demand continues to be on the light side. There have been some light complaints on mechanical damage and pink ribbing. Yuma continues to be the main growing area for this commodity.


Commodity Updates The Washington market is steady on all sizes and they are also heavier to the larger counts. The Colorado market is steady on all sizes. Colorado is producing more of the larger counts and is also limited on 80-count & smaller. The russet quality has been good to excellent in all areas. Stockton, California is still packing whites and golds but they are near the end of the season. Bakersfield, California is also 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 A-size. 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 South Florida squash tightened up a bit at the front of the week due to persistent rain in that region. However, the weather outlook going into the weekend looks to be dry so the market should return to the lower levels quickly. 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. TOMATOES Aaron Aliotti Western: Mature greens from Mexico are reported of good quality. Grape and cherry tomatoes remain plentiful while Romas are winding down with smaller volumes and suspect quality. Eastern: The Florida growers are bringing

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continued second and third pickings with smaller fruit to market. Due to recent cold weather, production has slowed keeping an up tomato market through Christmas. VALUE ADDED Gabe Romero/Mike Pacheco The supplies on lettuce are good. The Romaine supplies have good availability as well. Broccoli supplies have tightened up but all orders are being filled to its entirety. The cauliflower supplies are steady. 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 12-26-2012