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The Source

AUAI

THINGS YOU SHOULD KNOW:

COMMODITY ALERT:

West and east coast offshore red grapes not available to load until the end of the week Extreme cold temperatures in Idaho, potatoes are limited

January 14, 2013

Š 2013 PRO*ACT, LLC

LLC

Weather: Tim Lynch Freezing morning temperatures will continue this week in California and Arizona as the coldest temperatures of the season thus far along with very strong winds impact the entire western growing region this week. Many crops will be in the line of fire as freezing temperatures and strong winds impact the region. Winds in the 30mph range gusting up to 50mph are expected into midweek. Crop assessments will be ongoing and product will remain very tight for the foreseeable future. These temperatures can do extensive damage to row crops depending on temperatures reached and duration of these temperatures. At this point we will have to wait and see how the various regions come through the temperatures.

Small Granny-Smith & small Gala apples are extremely short

Extreme, continual cold weather has caused row crop items to be very scarce. Expect light supplies on most row crop items throughout the month of January

Freight: Mike McIntire Trucks in California have loosened up and should remain steady for the near future. Trucks in the Northwest have tightened up due to weather. Crude oil remained steady and is currently 93.56 per barrel. The national average on diesel fuel was at 3.911 per gallon last week and should trend steady for this week when it comes out later today.

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Commodity Updates APPLES/PEARS John Tole New York is packing Golden Delicious, Red Delicious, Rome’s, Crispins, and McIntosh. The availability is a little better now that we are past the New Year. All New York varieties are large except the Mac’s which are small. The larger New York shippers still expect to finish packing in mid March. Washington Reds continue to peak on size 88/100’s with high color. Small lower grade reds remain very short although there is some hail-grade available. Golden Delicious are also heavy to the 88/100 sizes and the Washington extrafancy 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 are peaking on 64-80’s. Lower grade Granny availability is extremely light 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 still very strong and many shippers are sold out!! Washington Fuji’s are heavy to 64/72/80’s and are producing more of the Washington extra-fancy grade. The Washington Fuji volume is 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 is still very active on all sizes. Demand exceeds supply. The continual freezing temperatures in Mexico has caused growth to be minimal on this commodity. Peruvian grass is available in LA but supplies are very light. 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 starting to see demand pickup and the market firm up. Supplies of 60’s and 70’s are lighter, with 48’s and 40’s still holding steady. Mexican

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Commodities at a glance… Commodity

Quality

Market

Excellent

Steady

Good

Higher

Excellent

Higher

Good

Steady

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

Steady Weaker Higher Higher Steady 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 Good Good Fair Good

Steady Steady 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

continued

fruit remains the major supplier and remains at a good price point even with the firming market.

switching into 11oz with a few 6oz being packed.

BELL PEPPERS Western Bells: Jaime Contreras Green bell market is slightly unsettled; some indications market is moving upward on all fruit. Southern California has wrapped up. Increasing crossings through Nogales but, sizing will be more toward medium and choice; supplies are 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 and anticipate wrapping up soon. 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 Not much change in this market but off grades is harder to come by. Market should remain steady through the week.

BROCCOLI Gabe Romero/Mike Pacheco This market continues to be extremely active. Demand exceeds supplies 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. The cold weather is going to continue. Pin rot, purple cast and bruising are common characteristics that is seen so please be aware. Supplies will be light for the next few weeks, and pricing will continue to rise.

BERRIES Mike Gorczyca Strawberries: Light demand and supplies out of California but good supplies out of Florida and Mexico is causing a weaker market out of all growing areas. Expect light color fruit arriving out of California due to the cold weather we have been getting. California supplies will still be limited till the end of January. Quality out of California is good on the Spring Crop which is loading out of Oxnard, Oceanside, Coachella and Irvine. Market is slightly weaker. Raspberries: Good demand and lighter supplies is firming the raspberry market. The lighter supplies are being caused by a typical light fruit set this time of year. Quality is being reported as good to fair. Blackberries: Supplies have also tightened up with moderate demand which has firmed this market up slightly. Quality is being reported as good. Blueberries: Moderate supplies and demand has this market steady. Quality is being reported as good. The main pack size is

CELERY Gabe Romero/Mike Pacheco This market continues to get stronger 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.

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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 continues to gain strength. Demand exceeds supply. Supplies will be minimal throughout the week. There are continual issues with brown spotting and curd discoloration seen upon arrivals so please beware of this. Pricing will steadily increase throughout the week.

CITRUS Tim Kelley Lemons: The Desert crop volume is good on large sizes as we see the size is switch 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. Fruit is testing well and color is good. Fruit is currently packing on heavy to the Fancy grade and peaking on 88’s/72’s/56’s. We have had freezing temps in the growing areas over the weekend and this morning. This cold could go through mid week. The early reports do not look bad, but assessments are still going on.


Commodity Updates Z Limes: Supplies are fair with some quality issues showing. Cold temps in the growing regions of Mexico has slowed growth and harvest. The market is firming. 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 two to three weeks. Extreme Demand Exceeds. Eastern Cucumbers: Janine Baird With the domestic crop coming to an end and multiple quality issues arising, the cucumber market remains very strong with limited availability. 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 extremely limited the next available product will be the end of the week on both coasts. Most reds are running small, 500 code and smaller. The west coast and now the east are selling the vessels out before they port. We will be limited at best on product through the end of this month. There are several varietals of green grapes around from Brazil, Peru and Chile. The green grape prices have a very large range depending on country of origin and varietal on the green grapes. Green grapes are limited as well on both coasts. Red Globes are available with good quality. GREEN ONIONS Gabe Romero/Mike Pacheco This market continues to be active. The freezing temperatures in Mexico have caused this commodity to be very scarce in availability. Demand exceeds supplies. 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

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continued

market is active on all sizing. There have been some slime and decay issues reported. LEAF LETTUCE Gabe Romero/Mike Pacheco This market continues to gain strength on all leaf items. Demand exceeds supply. Romaine hearts are extremely light and shippers are watching 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 are issues that all suppliers are dealing with on all leaf items daily. LETTUCE Gabe Romero/Mike Pacheco This commodity is active with all suppliers. The cold weather has hindered supplies severely with all shippers. The weights on the palletized lettuce have fallen off to 35-40 pounds. Demand exceeds supplies. There continues to be complaints on mechanical damage, pink ribbing, epidermal peel and discoloration. All shippers are having these issues. Yuma continues to be the main growing area for this commodity. MELONS: Amy Grolnick Cantaloupe: Offshore fruit is coming in with better volume. Cantaloupe is peaking to 12’s. Large fruit is remaining 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. It will remain limited into next week. Mexican fruit with some hit and miss quality issues. The market is strong. ONIONS John Tole Both Washington and Idaho/Oregon are higher again on all yellows and many 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 cold weather front hitting right now is only making the market worse. Washington is still peaking on jumbo and medium yellows while Idaho/Oregon is peaking on jumbos. Reds are also higher in both areas for the same reasons as the yellows. Whites are higher in both areas due to lower availability. The quality has been good in both areas and all colors.


Commodity Updates POTATOES John Tole The potato market is mostly steady on all sizes and both varieties but the availability is in question of the weather. The current cold temperatures are preventing any shippers from hauling bulk to their packing sheds so expect light if any availability on Idaho potatoes for the balance of the week. 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 Idaho’s carton production while 80’s and smaller are more 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 and they continue to produce more of the larger counts but they have been covering all orders. 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 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 The squash market remains strong. Quality is good, and prices are fair, but supplies are limited. STONE FRUIT Amy Grolnick There are both Hichiya and Fuyu persimmons and pomegranates available with good availability and quality. Off shore peaches and

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continued nectarines are available now but nectarines are extremely limited. TOMATOES Aaron Aliotti Western: Nogales is receiving an influx of tomatoes coming from Mexico. Supplies have increased for rounds while others remain steady. Supplies are light at the Mexico Crossing through Texas with a wide range of quality and condition are reported for Roma, grape, and cherry tomatoes. Eastern: The market is about steady with an abundance of smaller sized round tomatoes of good quality coming out of the east. As in past weeks, grape tomatoes remain plentiful. VALUE ADDED Gabe Romero/Mike Pacheco The supplies on lettuce are light. The Romaine supplies are extremely light as well. Broccoli supplies have tightened up severely. The cauliflower supplies will be limited throughout the week. Every value added item will be watched by processors in terms of twelve week averages over the next few weeks. 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 01-14-2013