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The Source THINGS YOU

September 18, 2013

Š 2013 PRO*ACT,

LLC

SHOULD KNOW:

COMMODITY ALERT: Cantaloupe is very limited Strawberry quality is fair out of the Northern growing areas

Weather: Tim Lynch A cool low pressure trough will impact the high pressure ridge out west with a brief cool down early this week. The marine layer will mix out each morning allowing for warmer temperatures inland. Temperatures will rise to the 80s to low 90s in the warmer interior valleys with temperatures in the 60s to low 70s near the coast.

Blackberry and Blueberry supplies limited with fair quality Lemons are in a severe demands exceed supply situation and will go into October Small Oranges are now in demand exceed supply Avocado supplies are very short. Demand is out pacing supplies. Mexico supplies look to be very light through September

Freight: Mike McIntire AUAI

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Trucks in California are steady but will tighten up toward the end of the week. Trucks in the Northwest and Idaho remain extremely tight and expensive. The national average for diesel remained steady at 3.974 per gallon. California price remained steady as well and is currently at 4.228 per gallon. Crude oil is steady at 106.57 per barrel.


Commodity Updates APPLES/PEARS John Tole New York continues packing McIntosh and Galas and they have started packing some Red Delicious and Ginger Golds. The Macs, Reds, and Gala’s are peaking on 100’s and smaller. The Ginger Golds are peaking on 80/88’s. Michigan is starting to pack Reds, Golds, Gala’s, and a few McIntosh. All varieties are average to small in size. Washington C.A. Reds are still peaking on extra-fancy 88/100’s but inventories are low and the market is lower. New-crop Red Delicious is peaking on 64/72’s and the Washington extra-fancy #1 grade. Golden Delicious is peaking 80/88’s and extra-fancy fruit. C.A. Granny-Smiths are steady to lower and supplies remain limited. New-crop Washington Granny’s are producing more of the smaller sizes. California Granny-Smiths are heavier to the smaller sizes as well. The market in both states is steady but there is some price flex for volume. Washington Gala’s are heavier on 88/100’s and the market is dropping. Washington Fuji’s are steady but supplies are very short in both C.A. and newcrop. California Fuji’s are steady and are peaking on the smaller sizes. A few Honeycrisp have started in Washington. Washington Bartlett pears are steady to lower and are peaking on US#1 100/110’s. California Bartlett Pears are steady on 110’s and larger while 120’s and smaller aren’t available. California will only be packing Bartlett’s for a couple more weeks. D’Anjou pears have started in Washington and they are heavier to 100/110’s. Red Pears are available in California & Washington and both markets are flat. Red pears are heavy to 45-55’s in both states. ASPARAGUS - Gabe Romero/Mike Pacheco Supplies have picked up dramatically out of the Mexico growing region. The market overall is steady. There is good availability on all sizing, including jumbos. Peruvian product is moderate in availability and can still be loaded out of Miami if desired. The overall quality is reported as being good in both growing regions.

Commodities at a glance… Commodity

Quality

Market

Apples Asparagus

Good Good

Lower Steady

Avocado (Mexican)

Good

Higher

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)

Good

Higher

Good

Steady

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

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

Eggplant (Western)

Good

Lower

Eggplant (Eastern)

Good

Steady

Excellent Excellent Good Fair Fair

Steady Higher Steady Steady Higher

Melons: Cantaloupe

Good

Higher

Melons: Honeydew Onions Pears Potatoes Squash (Western) Squash (Eastern) Stone Fruit Tomatoes (Western)

Excellent Good Good Fair Good Good Good Fair Very Good Good

Higher Steady Lower Lower Steady Lower Higher About Steady

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

Tomatoes (Eastern) Watermelon

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Steady Higher


Commodity Updates Z AVOCADO Tim Kelley Demand still remains very strong on all sizes. Shipments are still setting industry records. Mexico’s supplies are crossing, but still very light and will be through September. California size curve has adjusted and we are seeing more 60’s and 70’s coming in and fewer 48’s and larger. Peruvian fruit has been helping out some on the supplies of larger fruit. Market is firm.

BELL PEPPERS Western Bells: Mike Cantu Green bell market is trying to find its spot. Crops are currently shipping from Southern California and have started with mostly large fruit available. Bells are loading from Fresno, Gilroy, Los Angeles, and (colored bells) South Texas. Supplies improving as new lots are harvesting. Slight cooling trend is pressing markets slightly higher as this is slowing down production. We expect Coachella to start bell peppers by start of October. Open field colored Red bell market is coming off slightly as production improves. . Demand still exceeds availability from Southern California. New districts are set to come online by month’s end (Coachella). Gold bells markets continue steady availability depends on growing district. Extreme demand exceeds. Eastern Bells: Janine Baird Pepper supplies in Michigan have tightened up and the market appears to be starting to react, particularly in the off grades. Look for prices to jump a bit toward the middle of the week as Michigan winds down. North Carolina / South Georgia are still 2-3 weeks away from their pepper. Quality remains good. BERRIES Mike Gorczyca Strawberries: The strawberry market is steady with lighter demand and moderate supplies. Supplies continue to slowly wind down out of the northern growing areas (Salinas/Watsonville). Quality is still fair out of this area. Few growers have started with their fall crop strawberries loading out of Santa Maria but availability is limited. The fall crop strawberries are being reported with better quality and slightly larger size. This fruit is getting a premium. Oxnard Fall crop should

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slowly start up in the next couple of weeks. It is very important to keep trailer temperatures at 33 to 34 degree. Any break in the cold chain will expedite any issues. Keep inventory as lean as possible due to the short life of the fruit. Raspberries: Market is starting to firm slightly as supplies start to wind down out of the northern growing areas. Quality is fair to good. The next growing area to come into play will be Mexico which should start crossing in the next couple of weeks. Look for this market to continue to firm over the next couple of weeks. Blackberries: Market is firm with moderate supplies and very good demand. Look for supplies to continue wind down until Mexico comes in play in early October. Supplies are still coming out of Watsonville; Pacific Northwest; Central America. Quality is fair with a few good lots being harvested. Blueberries: Market is firm with moderate demand and light supplies. Supplies are winding down out of Oregon and Washington. Weather has been interrupting harvest. Michigan and British Columbia growing are are done for most shipper for the season. Argentina is projected to start in light way next week and ramping up quickly and should have th moderate supplies by October 10 . Watch for this market to continue to strength. Organic blue and pints are becoming very limited for all shippers. Main pack size is 6oz and will be switching to 4.4oz shortly. Quality is fair. BROCCOLI Gabe Romero/Mike Pacheco The broccoli market continues to gain strength in the marketplace, especially on crowns. The average pricing amongst the different suppliers is very close and this will likely continue throughout the week. Salinas and Santa Maria are the main growing regions with availability in Mexico as well. CARROTS Tim Kelley Supplies of JBO carrots are a little limited as carrots grown in the coastal areas of California are going and size is an issue. Quality is good. CAULIFLOWER Gabe Romero/Mike Pacheco The cauliflower market continues to get stronger. There are a few suppliers that have started the week sold out while others have minimal supplies available. Supplies overall


Commodity Updates Z are light to moderate out of Salinas and Santa Maria. Occasional brown spotting has been reported upon arrivals.

CELERY Gabe Romero/Mike Pacheco The celery market is firm. Large sizing, 24s and 30s continue to demand a higher price compared to smaller sizing. Supplies are expected to be moderate at best out of Santa Maria and Salinas for the entire week. Michigan’s weather in the growing regions has been up and down. CITRUS Tim Kelley Lemons: Demand exceeds supplies on all sizes from all shippers. This will continue thought September and the first part of October. The Ventura crop is basically done and what is left is old and tired. New crop from Coachella has began with very limited volumes expected for a couple for weeks and the Yuma crop has been hampered due to rains and may packed some limited numbers next week. Oranges: The Valencia oranges are beginning to re-green. Re-greening occurs as the orange continues to ripen on the tree and the summer’s warmer weather and longer day’s cause the orange’s skin to reabsorb chlorophyll, resulting in a green skin at the stem end. The fruit is still fully ripe, sweet and eats well. Valencia sizing is starting to peak on 88’s/72’s/56’s. Demand is exceeding supplies of small fruit (113’s/138’s) now that schools are in and pulling. Market is firming. Limes: Supplies are fair to light. Rains in the growing areas of Mexico has halted or slowed harvest. Quality will still be an issue with these rains (stylar, Brown/sugar spots and lighter color). CUCUMBERS Western Cucumber: Mike Cantu Market is steady. Supplies’ though are not meeting demand, movement is brisk, and prebooks are encouraged. Cucumbers are mostly from Baja California and they are experiencing quality issues do to some recent rains; very few domestic cucumbers. Eastern Cucumbers: Janine Baird South Georgia and Central Florida have started working cukes but the volume is still very light. Temperatures in the Northern growing regions

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have become quite cool, leading to lighter supplies there as well. With product in both regions the prices shouldn’t get too high, but supplies will be tight for the better part of the week. EGGPLANT Western Eggplant: Mike Cantu Market is very unsettled as supplies are very light and demand is outpacing supplies. There is a wide range of quality and lighter supplies due to impending transitions and awaiting new lots to come online. Some districts wrapping up earlier than expected due to late June’s heat wave. Cooler temps this week may also slow down production. Eastern Eggplant: Janine Baird Eggplant is in good supplies in the Northeast and Michigan, with Georgia continuing to work eggplant. There is good demand on eggs now, holding the market steady. GRAPES: Amy Grolnick Crimson, Scarlet Royal and Vintage reds are all available with excellent quality. The Crimson is a little limited as they have been struggling with color. The market on red is firm with good demand most fruit is large and bigger so the med/lg fruit is limited. The green grapes are plentiful with Sugarones, Princess, Thompsons, and Pristines shipping out. The market is steady. Black seedless has excellent quality and very good availability as well. Seeded Globe is available as well with excellent quality. GREEN ONIONS Gabe Romero/Mike Pacheco The market is firm with most suppliers. The growing region of Mexico has had a lot of rain and production has been altered on this commodity. Mexico and California are the major growing regions currently. LEAF LETTUCE Gabe Romero/Mike Pacheco The leaf market is steady. Romaine supplies are moderate with some suppliers being better off than others. There is some price fluctuation in the market. The green leaf availability has increased with a few suppliers as demand has fallen off. Problems still exists with tip and fringe burn on leaf items. Romaine Hearts will continue to be in good supply this week. Red leaf will have moderate availability.


Commodity Updates LETTUCE Gabe Romero/Mike Pacheco This market is active with all suppliers. Supplies are light to moderate. Expect supplies to get even tighter in the industry by the end of the week. There continues to be quality issues including tip burn, some mechanical damage, and pink ribbing. Weights on the average on palletized lettuce have ranged from 41-45 pounds. MELONS: Amy Grolnick Cantaloupe: The market is still demand exceeds on cantaloupe 9 and 12’s. Product is hit and miss on availability with each shipper. The Westside may finish up a little early this year and it looks like by next week you will see it even more limited. Honeydew: The market remains steady; supplies are still good along with quality. We will see that change next week as honeydew start to finish up as well. ONIONS John Tole Yellows are steady in Washington, Oregon, and Idaho. All three states had rain last weekend and it has slowed the harvest but hasn’t impacted the market yet. Both districts are still producing mostly jumbo & medium yellows. Colossal and Super supplies aren’t as prevalent esp. in Washington. Colorado is rained out for the next few days. Red onions are also steady in the northwest. Whites are steady as well. The quality has been good on all colors in Washington, Oregon, Idaho, and Colorado. POTATOES John Tole Idaho production continues to chug along and they are controlling the market. The peak sizes have shifted to 60 through 80 counts but there is no shortage of 90/100’s. The maturity on the Idaho Norkotahs has been good. Washington Norkotahs are steady to lower and they are peaking 80’s and smaller. The Washington market has not adjusted with Idaho. Nebraska, Colorado, and Wisconsin are also steady and are still limited on the larger counts. They have also not adjusted like Idaho and they are all priced relatively high still. Stockton, California continues packing Red, White, and Gold

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Continued potatoes and they continue to peak on A-size and larger. B-size Golds and reds remain short. Stockton will pack through next week. Bakersfield will start packing colors next week. Western Washington continues packing reds, whites, and Golds potatoes and they are all peaking on A-size. The Washington market is steady to lower. Wisconsin red potatoes are mostly steady on B’s and C’s with some flex on A-size. Minnesota red potatoes are steady on all sizes and they are also peaking on A’s so most suppliers will flex for volume. SQUASH Western Squash: Mike Cantu Market is steady on both Italian and Yellow S/N. Production has started in earnest with wide range of quality. Supplies are improving but the wide range of quality is causing a two tiered market. Lower end quotes are reflective of trouble lots. Recent weather has increased production. We anticipate production to slow as cool weather passes through. Eastern Squash: Janine Baird South Georgia’s squash deal is ramping up and many shippers are looking to move product. However, with Michigan/Ohio’s cooler temperatures we are experiencing a two tiered market. Expect the market in Michigan to rise through the week as the cool temperatures affect supplies. Meanwhile, the Georgia market could remain on the floor for the remainder of the week, weather providing. STONE FRUIT Amy Grolnick Nectarines have finished up for the most part, with only pallet quantities of white nectarines still around but hard to find. Peaches are still around and have good availability this week. Black plums have better availability as Angelinos have begun, quality is good and product is running mostly large. Red plums are still available but with limited sizes and are starting to clean up. TOMATOES Aaron Aliotti Western: Rounds in the west also have limited supplies of larger sized fruit. Reports of visual defects are presenting abnormal color and cat facing in rounds from California attributed to


Commodity Updates the heat wave 8 weeks ago. Recent rains south of the boarder have had a negative impact on roma harvests in Mexico and prices have elevated again with most demand coming from California. Prices may climb further the next few weeks until Mexico growers can help California meet market demand. Until then, roma prices are expected to be elevated and firm as California attempts to supply the nation from limited crops. By Mid October Mexico should be able to help the shortage of tomatoes as they recover from heavy rains and their post summer production ramps up. Eastern: We are starting to see prices come down this week in the round market as anticipated growing regions in the East come to market, although there is still a noticeable difference in price between sizes. As in weeks past larger sized fruit is scarce with the majority of packing filled with medium sized tomatoes. Quincy Florida has begun to harvest for October, and until Florida gets in the full swing Virginia will be able to bridge the gap the next few weeks. Prices are higher in these areas allowing those in the east to take advantage of freight savings and also softening the price in the West as more products become available in the market place. VALUE ADDED Gabe Romero/Mike Pacheco Supplies are lighter on lettuce and this will continue throughout the week. The cauliflower supplies are light to moderate in availability. All quantity demands are being met. Broccoli supplies will be light for the week. Romaine is being harvested with some fringe burn. This is happening with most suppliers. Green cabbage supplies are starting to loosen up as supplies have increased with a few shippers. WATERMELON Mike Cantu Market is unsettled and availability is demand exceeds as some districts are wrapping up and the available fruit is in limited hands. Some monsoonal weather hampered harvesting this prior week. New Mexico has started shipping seedless and seeded bin watermelon. Most availability is in bins and very limited cartons.

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