THINGS YOU SHOULD KNOW:
February 25, 2013
ÂŠ 2013 PRO*ACT, LLC
Weather: Tim Lynch COMMODITY ALERT:
Strawberries are in a demand exceeds supply situation
Clear with cool mornings will be the norm as high pressure moves into the desert locals with gradual warming through the week. Cold mornings with lettuce ice likely in the colder interior valleys along with strong afternoon winds will give way to warmer temperatures mid week as the high pressure ridge moves in. Temperatures below norms to begin the week will rebound to above normal late in the week. Strong winds and cold temperatures will be the main concern early this week as these dry cold systems move through the region.
Cantaloupe and Honeydew continue to run very large. Limited supplies for next 2 weeks.
Small Granny-Smith apples are extremely short
Freight: Mike McIntire Trucks in California continue to be plentiful and should remain that way for the near future. Trucks in the Northwest are steady. Crude oil remained steady and is currently 93.20 per barrel. The national average on diesel fuel continues to rise and the trend should continue from last weekâ€™s price of 4.157. Updated pricing will come out later today.
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Commodity Updates APPLES/PEARS John Tole New York continues to pack Golden Delicious, Red Delicious, Red Rome’s, McIntosh, and Empires. The availability is fair and all varieties are still heavy larger fruit except the Mac’s which have ranged in size. The larger New York shippers are still expecting to pack through March. Washington Reds are peaking on extra-fancy 88/100’s. The lower grades and smaller size reds remain short. Some suppliers are still packing hail-grade reds. Golden Delicious is also heavy to extra-fancy 88/100’s. Lower grade Golden availability remains 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. Galas are heavy to size 80100’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 extrafancy grade. Fuji volume is up over last year though and the deals continue with this variety. Pink-Lady’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 is steady. The pricing is down on standard and large and up on extra large and jumbo. 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 are expected to be good throughout the week for Mexican product. The frigid temperatures this past week in Mexico altered production slightly, but warmer weather is expected this week. AVOCADO Tim Kelley Mexican fruit supplies are starting to tighten some as growers hold back on harvest in hopes of raising the market price. They remain to major supplier to the states. California is beginning to harvest daily and will slowly see increase in volume.
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Commodities at a glance… Commodity
Good Good Good Fair Good Good Good Good Good Good Good Good Good
Steady Higher Steady Lower Steady Steady Steady Steady Steady Steady Steady Steady Steady
Grapes, Green Grapes, Red Green Onions Lettuce: Leaf Lettuce: Iceberg
Good Good Fair Fair Fair
Lower Lower Lower Higher Higher
Melons: Honeydew Onions Pears Potatoes
Good Good Good Excellent
Higher 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 BELL PEPPERS Western Bells: Mike Cantu Green bell market is unsettled; indications market is moving upward on large fruit. Adequate supplies on choice and smaller fruit. Open field colored Red bell market is showing signs of an upward trend in market as some are transitioning or experiencing a small gap. Supplies are adequate and mostly big fruit available as some new acreage comes online. Gold bells are indicating an upward trend in FOB’s as some are transitioning and gapping. Demand exceeds current supplies. Eastern Bells: Janine Baird The pepper market remains stable with no real changes expected for the front of the week.
BERRIES Mike Gorczyca Strawberries: We are still in a demand exceeds situation on Strawberries out of California and Mexico. Florida supplies are better with most shippers. Forecast is calling for rain this week which will hurt the harvest as this week moves on. Quality is fair out of this area. Mexico supplies are winding down quickly which is typical. We have about two weeks left before they will be done for the year. California supplies will slowly improve over the next two weeks. Quality is being reported as good. Market is firm. Raspberries: Supplies will continue to be light for all shippers but will slowly improve as we get into March. 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... BROCCOLI Gabe Romero/Mike Pacheco This market is firm to start he week. Suppliers overall are light in supplies to begin the week, and offers on large, volume type orders are being passed on. Santa Maria production is light. Expect pricing to get stronger as the week goes on. Cool weather in the desert this past week has slowed production. The overall quality is reported as being good.
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CARROTS Tim Kelley California carrot supplies are steady. Demand remains good and market is steady. CAULIFLOWER Gabe Romero/Mike Pacheco This market is firm. Pricing is steady with all shippers. Supplies are definitely tighter as supplies have tightened up. With the cold front that went through Yuma this past week, expect availability to be light for the week. Expect pricing to increase steadily for the rest of the week. There have been a few issues of brown spotting seen upon arrivals. CELERY Gabe Romero/Mike Pacheco This market is steady overall. There is a pricing gap amongst shippers ranging from three-five dollars. Supplies have tightened up in 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 to moderate throughout the week. CITRUS Tim Kelley Lemons: The Desert crop is finished for this season. The Ventura and the Central Valley are now the lemon producing areas. Volume is good on all sizes. Quality is good. Oranges: The Navel crop volume is good. Fruit quality and flavor is very good. Fruit is currently peaking heavy to the Fancy grade and on 88’s/72’s/113’s, with 56’s and larger a little tight. Limes: Supplies are fair with some quality issues showing. Cold temps in the growing regions of Mexico have slowed growth. The market continues to 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 The cucumber market continues to be very strong as there is limited availability out West and cool temps in the Honduran growing regions have limited those supplies. Expect shippers to take advantage of this situation,
Commodity Updates Z keeping prices at the higher levels until the domestic deal starts in a week to 10 days.
EGGPLANT Western Eggplant: Mike Cantu Market is on an upward tick. Demand has picked up slightly. Eastern Eggplant: Janine Baird The eggplant market is gaining strength as supplies out of South Florida begin to dwindle. GRAPES: Amy Grolnick Shippers continue to price based on fruit quality. There will be a late vessel arrival on the west coast this week so product will clean up prior to the new fruit coming in Friday. Quality problems will include splits and soft wet berries at the low end of the pricing. The east coast has good availability of product mostly med and med/lg fruit. Green grapes remain limited with pricing now in the 20â€™s. Globes with good availability, blacks are becoming more limited with higher prices. GREEN ONIONS Gabe Romero/Mike Pacheco This market is softer. Supplies have been much better out of the Mexico region. Overall, supplies are expected to be moderate to good for the entire week. 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 up on romaine. The blister and peel continue to wreak havoc on the production of this commodity. 8-10 leaves of blister and 23 leaves with brown blister is a common characteristic that suppliers are dealing with. Green and red leaf is softer and shippers are willing to deal on decent size orders. Blister and peel continue to be growing issues that all suppliers are still dealing with. With the cold front that went through Yuma this past week, the growing issues will continue. Escalated pricing continues on all on all romaine items. LETTUCE Gabe Romero/Mike Pacheco This market is up to start the week. A few suppliers have walked into the cooler sold out to begin the week. Pricing will likely be stronger throughout the week. There have been
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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. MELONS: Amy Grolnick Cantaloupe: Fruit is limited at best with only very large product available. Most Guatemalan shippers are between fields with the majority of the fruit coming out of Honduras and very limited. Small fruit will have little to no availability this week. The market is very firm. Honeydew: Offshore and Mexican fruit is limited. Mostly large fruit is only available. The next few weeks will have limited availability. The market is very firm. ONIONS John Tole The northwest yellow market is starting to stabilize as the smaller shippers finish up. The larger suppliers should continue packing through mid April. The demand remains relatively light. Jumbo yellows are still the peak size in the northwest. Mexican sweet yellows are lower and being pulled down by the storage market. Mexico is still quoting Colossal and smaller. Northwest Red onions are steady to slightly lower. Red storage supplies remain low. Mexico is still crossing a few reds and that market is steady. Whites are slightly lower in the northwest. Mexican whites are also slightly lower. The onion quality has been good in both areas and all colors. POTATOES John Tole The Idaho and Washington potato markets are both flat. Several Idaho packers are still offering volume deals to generate movement. Most Idaho shippers are still packing Burbanks and only a few are running Norkotahs. Idaho continues to peak on 70-count and larger. Washington is steady on all sizes and they remain heavy to the larger counts as well. Colorado is steady on counts and they are also peaking on the larger sizes. The russet quality has been good to excellent in all areas. Bakersfield, California continues packing reds, Goldâ€™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
Commodity Updates 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 steady to 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 signs of increasing supplies ought to start alleviating pressure on the market. 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 couple of weeks. Indications are some areas are experiencing bloom drop gaps but, for the most part production has slowed until weather returns to its seasonal averages. Eastern Squash: Janine Baird Supplies on green and yellow squash are extremely tight again this week. With unusual warm temps laying over south Florida, the squash fields are not getting properly pollinated, and therefore producing very little actual squash. Expect short supplies and high prices on squash throughout the week. STONE FRUIT Amy Grolnick Persimmons are finishing up with limited sizes available. 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: Cooler weather south of the boarder has also caused volume to slow at Mexico crossings last week. With a reduction in shipments coming from Mexico and demand increasing, the market has strengthened a bit this week. Roma Tomatoes are slightly higher. The last week of February is expected to be very active with the proposed increases in pricing coming from the revisions to the Suspension Agreement due to take effect th March 4 . Eastern: The combination of recent rain and cool weather has caused some strengthening in the market this week. Quality fruit is continually reported from Florida with smaller sized tomatoes in fewer quantities. Early March
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continued should show an increase in volume, however is expected to drop off by April due to the recent weather that has come through the Immokalee region which has caused some slowing to production. VALUE ADDED Gabe Romero/Mike Pacheco The supplies on lettuce are lighter, but there is enough to fill the processors needs. The Romaine supplies will be light throughout the week, with blister playing a large factor in production. Broccoli supplies will be light throughout the week. Processors will be attempting to buy fields for this commodity. The cauliflower supplies are expected to be light with all 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.