THINGS YOU SHOULD KNOW:
COMMODITY ALERT: Strawberries are in a demand exceeds supply situation
Cantaloupe and Honeydew running very large sized
February 18, 2013
ÂŠ 2013 PRO*ACT, LLC
Weather: Tim Lynch Dry conditions with above normal temperatures in the desert regions early this week will give way as a series of low pressure systems move in out west. The desert regions will warm to above normal high temperatures (mid 70s) through Tuesday when the ridge begins to weaken. A drastic cool down, strong winds and rains are expected late Tuesday through the week. The first and most powerful in this series arriving late Tuesday will bring widespread rain and winds throughout California before impacting the desert locals on Wednesday. Cold temperatures, winds and a chance of rain will continue through the weekend as these systems roll through the region.
Extreme cold temperatures in Idaho, potatoes are limited
Small Granny-Smith & small Gala apples are extremely short
The storage onion market is extremely active for all colors!
Freight: Mike McIntire Trucks in California continue to be loose and should remain that way for the near future. Trucks in the Northwest are steady. Crude oil remained steady and is currently 95.36 per barrel. The national average on diesel fuel continues to rise. Look for the trend to continue from last weekâ€™s price of 4.104 per gallon when it comes out later today.
P RO * AC T T h e S our ce
Commodity Updates APPLES/PEARS John Tole New York still has Golden Delicious, Red Delicious, Red Rome’s, McIntosh, and Empires. The availability is fair. All varieties are peaking on the larger size fruit except the Mac’s which have ranged from large too small. The larger New York shippers are still expecting to pack through March. Washington Red Delicious is still peaking extra-fancy 88/100’s. The lower grade and smaller size reds remain limited. A few shippers are packing hail-grade reds but supplies are hit and miss. Golden Delicious is also peaking on extrafancy 88/100’s. Lower grade Golden availability is fair on 88’s and larger and light on the smaller sizes. Granny-Smiths are peaking on 64-80’s and the higher grades. Small fruit and the lower grades are in a demand exceeds supplies situation except on the Premium grade. Galas are heavy to size 80-100’s and the Washington extra-fancy grade. Gala demand remains very strong! Washington Fuji’s are heavy to 64/72/80’s and are producing more of the Washington extra-fancy grade. Fuji volume is up over last year though and the deals continue with this variety. PinkLady’s, Cameo’s, Jonagolds, Braeburns, Rome’s, Jazz, and the other varietals are still available. Washington D’Anjou's are still peaking on the larger sizes and the US#1 grade. Washington Bartlett’s are still producing mostly us#1 110’s but supplies are light. Bosc and red pears are still available. ASPARAGUS Gabe Romero/Mike Pacheco This market continues on a steady course. The availability out of Mexico continues to gain strength with most sizing. Jumbo sizing has even picked up in production. Peruvian grass is available in LA, as well. If loading is an option in Miami, Peruvian grass is available at lower fob costs compared to California. Supplies look to be god throughout the week. AVOCADO Tim Kelley Mexico continues with good volume and good demand and they remain to major supplier and supplies are expected to continue very good from Mexico. California is starting to harvest and slowly increase in volume. BELL PEPPERS Western Bells: Mike Cantu Green bell market is unsettled; indications
P RO * AC T T h e S our ce
Commodities at a glance… Commodity
Good Good Good Fair Good Good Good Good Good Good Good Good Good
Steady Higher Steady Lower Steady Higher Steady Steady Lower Steady Steady Steady Steady
Grapes, Green Grapes, Red Green Onions Lettuce: Leaf Lettuce: Iceberg
Good Good Fair Fair Fair
Lower Lower Steady Lower Steady
Melons: Honeydew Onions Pears Potatoes
Good Good Good Excellent
Steady Steady Steady 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 market is moving upward on large fruit. Adequate supplies on choice and smaller fruit. Open field colored Red bell market is settling. Crossings ought to increase as weather improves and new acreage is coming online. Gold bells are indicating an upward trend in FOB’s as some are transitioning and gapping. Eastern Bells: Janine Baird This market is coming off a bit this week as demand moves out west. Quality and volume out of Florida are good and should continue to be so through the week. BERRIES Mike Gorczyca Strawberries: Florida had to run water last night due to very cold temperatures in the growing area. Most growers in Florida will be staying out of their fields today. Market is firm. California had ideal weather on Saturday and Sunday and now is in a cooling trend. The forecast is calling for some rain Tuesday night into Wednesday and another chance of rain over the weekend. Supplies will be tight all week. Market is firm. I am hoping that supplies should slowly improve late next week. Market is very active. Raspberries: Supplies will continue to be light for all shippers till the end of February. Market is firm but steady. Quality is being reported as good with a few fair lots showing up. Blackberries: Supplies are good with light demand is causing a weaker market. Quality is being reported as good. Blueberries: Good supplies and moderate demand has this market steady. Quality is being reported as good to fair depending on the lot. The main pack size is switching into 11oz with a few 6oz being packed. Supplies will start to improve over the next couple of weeks. BROCCOLI Gabe Romero/Mike Pacheco This market is active on bunched product as well as crowns. A few suppliers have walked in Monday morning sold out on all items. Santa Maria production is light and Yuma has hit a gap. Expect pricing to increase throughout the week. The quality is good, overall. CARROTS Tim Kelley California carrot supplies are steady. Demand remains good and market is steady.
P RO * AC T T h e S our ce
CAULIFLOWER Gabe Romero/Mike Pacheco This market is a little strange. Overall, pricing is steady for now, but some suppliers are much better off than others. Some shippers have lighter supplies and are two to three dollars higher than the competition. Expect pricing to increase by the middle to end of the week with most suppliers. Look to see lighter supplies early next week. CELERY Gabe Romero/Mike Pacheco This market is softened a little. Supplies continue to be light out of Santa Maria, Oxnard, and Yuma. The smaller sizes, mainly the 36s have a little better availability, compared to the larger sizing. The supplies out of all areas are expected to be light 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 very limited. Desert crop will be finishing by the end of the month. Ventura crop will be ready to go soon. 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, but still good availability on all sizes. Limes: Supplies are fair with some quality issues showing. Cold temps in the growing regions of Mexico have slowed growth. The market is firm. CUCUMBERS Western Cucumber: Mike Cantu Market is very unsettled. We are experiencing from all indications a gap due to bloom drop resulting from the last cold snap a few weeks back. We anticipate better supplies by week’s end. Current market is extreme demand exceeds. Eastern Cucumbers: Janine Baird Cool weather in Honduras has caused the cuke market to tighten back up. A tightening market out west has lead to strong demand and high prices.
Commodity Updates Z
EGGPLANT Western Eggplant: Mike Cantu Market appears ready to go up as Lenten season begins; supplies are meeting current demand. Eastern Eggplant: Janine Baird The eggplant market is loosening up with supplies and quality improving daily. Demand is steady.
of the week, as supplies are expected to be tighter with some shippers. The weights on the palletized lettuce have been averaging 40-44 #s in Yuma. There have been complaints on mechanical damage, pink ribbing, and epidermal peel. The complaints however have been less compared to past weeks. The desert region continues to be the main area of production for this commodity.
GRAPES: Amy Grolnick Red grape prices are all over the board based on quality. Shippers are pricing out product with major quality problems at open prices to very nice clean fruit in the 20’s and anywhere in between, all based on quality. This week the east coast is getting in a lot of rained on fruit and by the end of this week the west will be receiving it in as well. Quality problems will include splits and soft wet berries at the low end of the pricing. Green grapes remain limited with pricing in the low 30’s. Globes with good availability, blacks becoming more limited with higher prices.
MELONS: Amy Grolnick Cantaloupe: Offshore fruit is on the second cycle. Yields are above normal so there’s good availability. Fruit is very large sized with limited small fruit around. East and west coast both have good availability. Honeydew: Offshore dews are steady with good availability. The market remains steady.
GREEN ONIONS Gabe Romero/Mike Pacheco This market is steady. Supplies continue to be light out of Mexico. Overall, supplies will be light throughout the week as crop issues continue in the growing regions of Mexico. Escalated pricing is in effect on all contracts. There continues to be issues of yellowing, slime and decay being reported upon arrivals. This is an industry wide issue. LEAF LETTUCE Gabe Romero/Mike Pacheco This market is softer. Supplies are better on romaine and romaine hearts. Blister and peel are still being reported on all romaine items. Green and red leaf is softer with a few suppliers. Blister and peel continue to be growing issues that all suppliers are still dealing with. Although weather conditions have improved in the desert, crop damage will continue for the rest of the season in Yuma. Escalated pricing continues on all on all romaine items. LETTUCE Gabe Romero/Mike Pacheco This commodity is steady to start the week. Pricing is expected to be stronger by the middle
P RO * AC T T h e S our ce
ONIONS John Tole The yellow market is lower again and there are deals to be had. Most packers maintain that the storage numbers are low and the market will rebound but for now the demand is relatively light and supplies are available. Both Washington and Idaho/Oregon still packing mostly jumbo yellows. Mexican sweet yellows are also lower on all sizes. They are quoting Colossal and smaller now. Northwest Red onions are slightly lower due to the lighter demand. Storage red supplies remain relatively low in the northwest. Most Washington shippers will only selling reds with yellows. Mexico is crossing a few reds now too. Whites are lower again in the northwest as well. Mexican whites are available in Texas but that market is also off. The onion quality has been good in both areas and all colors. POTATOES John Tole Idaho potatoes are flat with light demand. Several Idaho packers are still offering volume deals to generate movement but the demand is light. Most suppliers are still packing Burbanks but a few still have Norkotahs, and most continue to peak on 70-count and larger. Washington is steady on all sizes and they remain heavy to the larger counts. Colorado is also steady to lower on counts and they are also packing larger sizes. The russet quality has been good to excellent in all areas.
Commodity Updates Bakersfield, California continues packing reds, Gold’s and Whites but this is the last week on whites. All three California varieties are heavier to A-size. Washington, Wisconsin, and North Dakota continue packing red & gold potatoes and they are all mostly steady. All areas have better availability on A-size. North Dakota & Washington are coming to the end of the season. Florida is packing red and gold potatoes and they are heavier to A-size. The Florida market is slightly lower. The colored potato quality has been fairly good to excellent in all areas. SQUASH Western Squash: Mike Cantu Market continues unsettled on both Italian and Yellow S/n and both. Supplies have been interrupted as the last and latest weather disturbances will and have hampered production in some growing areas. Supplies will continue light for at least 1-2 weeks. Indications are some areas did experience cold weather damage but, for the most part production has slowed until weather returns to its seasonal averages. Eastern Squash: Janine Baird Yellow and green continue to experience strong markets as temps in south Florida drop to just above freezing. Production should be slow for the next several days. STONE FRUIT Amy Grolnick There are both Hichiya and Fuyu persimmons and with limited quantity. Off shore peaches, plums, and nectarines are available with good supplies. Cherries are done for the season. CA Cherries will start around May 1. TOMATOES Aaron Aliotti Western: With the slowing of Roma production in Florida, Mexico continues to increase the volume for both Roma and Grape tomatoes crossing the boarders into the US. Quality has improved from weeks past with better color and size available. Trade Agreement Update: The Mexico Trade Suspension Agreement averts a trade war that was destined to take place without an agreement, but the new pricing levels could cause many in Mexico to reduce plantings as the floor they are restricted to is proposed to be dollars higher. The heaviest affected items will be Grapes and Cherries, followed by Roma’s
P RO * AC T T h e S our ce
continued and then rounds based on the new rules offering different floors by variety and type. The details of the agreement are being defined, specifically weight increases by variety. The proposed agreement will make Mexico growers look at plantings for next season to reduce losses as the new pricing will not affect floor pricing in the US or any other county. Since th the pricing takes place March 4 if approved, growers in Mexico may discontinue planting existing fields if the markets don’t support the new pricing. Eastern: Round tomatoes are of good quality and availability in the East. Larger fruit is easier to come buy since many growers are still harvesting their crown picks. Weather may also contribute to sizing in weeks to come but quality is expected to remain excellent. VALUE ADDED Gabe Romero/Mike Pacheco The supplies on lettuce are ample for all the processors needs. The Romaine supplies have increased with many suppliers. Broccoli supplies will be light throughout the week. Processors will be attempting to buy fields for this commodity. The cauliflower supplies are good with most suppliers. WATERMELON Mike Cantu Market is extremely unsettled and on an upward trend. Demand exceeds on s/less watermelon. Jalisco has entered new acreage and some growing areas are experiencing rain related issues. Production is off by nearly sixty percent. The North districts are expected to start first weeks of March. Until then supplies will be extremely light. Availability on seeded watermelon is sporadic.