THINGS YOU SHOULD KNOW:
September 6, 2012
© 2012 PRO*ACT, LLC
Weather: COMMODITY ALERT:
A fairly weak high pressure trough building out West will bring a slight warming trend throughout Central California this week. The expected slight warm will bring temperatures to near seasonal norms in the low-60s along the coast to mid to upper 80s in inland regions. This pattern will also bring slightly warmer temperatures, expected in the 90s, to the San Joaquin Valley.
Stone fruit is finishing up quickly most shippers will finish harvest on all fruit next week
Westside Cantaloupe is gapping at the end of this week.
Washington apple demands are very strong as the early school demand has started, so stay ahead!
Small size oranges 113’s and 138’s are very, very limited
Strawberry quality is currently just fair. Only order what you need as product is not holding up like everyone is use to
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Freight: Mike McIntire Trucks in California continue to be tight due to the Labor Day holiday and the lack of freight headed west. Trucks in the Northwest and Idaho are steady. Crude oil remained steady and is currently at 96.57 per barrel. The national average continues to rise and is currently at 4.127 per gallon.
Commodity Updates APPLES/PEARS John Tole New York is now packing Mac’s, Jonamac’s, and Gala’s and the size profile is mixed. They will start packing Empires and Honeycrisp in two weeks. Washington is still limited on C.A. red delicious and they won’t pack new-crop in volume for another week so stay ahead on them! Most shippers are finished with the early golden varieties and some have started with golden delicious. CA Granny-Smiths are still peaking on higher grade 88’s & 100’s but most shippers are sold out or have very little to offer! Some suppliers will start with early Granny’s next week. . California is still packing Grannysmith’s and they are peaking on 100’s and smaller. Washington Gala inventories are getting larger by the day and there are good numbers of smaller fruit. California Gala’s are steady but supplies are extremely short and most shippers are finished. California has also started packing Fuji & Braeburn apples. California pears include Bartletts, Bosc, and Stark-Crimson pears. The Bartletts are heavy to the middle sizes so you’ll see more deals on 100’s and larger, 110’s and smaller are very short. The Washington Bartlett market is more stable now as they have adjusted to California. ASPARAGUS Gabe Romero/Mike Pacheco The market on Mexican grass has softened on all sizes. Supplies are better on standard, large and x-large. Jumbo packs are much better in availability as well. The pricing on Mexican grass is very comparable to Peruvian product. This has not happened for some time. There continues to be no 28 pound cases being packed by any supplier, only eleven pounders. AVOCADO Tim Kelley Mexico’s Flora Loca crop this year is producing good volume. The Flora Loca will have lower maturity than the old crop and will take longer to ripen. California volume is good and size curve has evened out with more 60’s and 70’s coming in to the packing house. BELL PEPPERS Western Bells: Jaime Contreras Green bell market is on an upward trend. Expect some lighter supplies this coming week. Anticipated moisture and cooler temperatures in some growing areas may slow down some shipping production. Colored Red bell market is steady but growers are anticipating slightly
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Commodities at a glance… Commodity
Good Fair Good Fair Good Good Good Good Good Good Good Good Good
Steady Higher Steady Higher Higher Higher Steady Steady Steady Lower Higher Steady Steady
Good Fair Fair Good Good Good Excellent Good Excellent
Higher Steady Higher Steady Steady Steady Lower Lower Lower
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) Eggplant Red Grapes Green Onions Lettuce: Leaf Lettuce: Iceberg Melons: Cantaloupe Melons: Honeydew Onions Pears Potatoes
Commodity Updates lighter production. We expect some moisture and cooler temperatures which will impact harvesting. Demand slightly exceeds market. Gold bells are settling but, they continue demand exceeds supplies. Eastern Bells: Janine Baird Volume will be light at the front part of the week since there was not much picking over the 3 day holiday weekend. However, the market should remain unchanged for the week, as volume will increase and demand will stay steady. BERRIES Mike Gorczyca Strawberries: We are having an industry wide problem with the quality of strawberries shipping out of Central California (Salinas/Watsonville). The strawberry plants are very weak at this time year due to the fluctuations in weather and the plants being close to the end of their life cycle. Berry size is small to medium, 5 to 10% bruising at shipping point. Most berries are showing full color, and fruit is showing bruising due to the level of maturity. Arrivals are also showing bruising, wet, leaky berries and decay. These kinds of arrivals include even the best of labels. We do not anticipate these arrival conditions to change in the near future. Shippers are being very selective as to where and to whom their fruit is being shipped to because most packs, if not all, will have issues upon arrival. We are in a demand exceed supply situation. Only order what you need due to the short shelf life of the fruit. The next growing area to come into production will be Santa Maria which has started in a light way with limited volumes. Quality on this fall crop is being reported as good. Market is firm. Raspberries: The market is steady with moderate supplies. Quality has improved. Blackberries: Blackberries are still in a demand exceed supply situation. Quality is fair at best. Supplies keep going backwards each week. Look for this market to stay tight for the next month. Santa Maria should start packing some light numbers this week. Blueberries: Blueberries are starting to come out of controlled atmosphere. You will start to see pack dates on blueberries extend farther into the past due to this. Quality has started to improve. Market is still firm. The main pack size
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is 6oz and smaller. Only a few shippers are still packing Pints. BROCCOLI Gabe Romero/Mike Pacheco This market is more active on bunched product as well as crowns. Santa Maria and Salinas continue to be the main growing regions for this commodity. There are no major issues to report in terms of quality. Supplies should be moderate for the rest of the week. Demand, overall has picked up. CARROTS Tim Kelley California carrot supplies remain good. Sizing of the carrots are good with steady warm weather. CAULIFLOWER Gabe Romero/Mike Pacheco There continues to be excellent supplies on this commodity. The larger sizes have a slightly smaller availability, but overall there is plenty of product available for all users. Supplies are expected to be good throughout the week. CELERY Gabe Romero/Mike Pacheco This market is firm. All sizing is light to moderate depending on the shipper. The option for Salinas and Santa Maria are the two regions to choose from when loading out of California. Suppliers are reluctant to offer volume deals for the most part at this time. Oxnard is expected to begin production in early November. CITRUS Tim Kelley Lemons: Ventura crop harvest is going at full production. Supplies are good, with good steady demand. Oranges: The Valencia orange harvest remains steady, with sizing peaking on larger sizes – 72’s/88’s, with very little 138’s or 113’s. It is demand exceeds supplies on the 113’s and 138’s, with 88’s starting to get a little tight. Limes: Supplies are down on all sizes. Rains in the growing area has slowed harvest and causing quality issues. CUCUMBERS Western Cucumber: Jaime Contreras Market is settling; continuing very light supplies on all fruit. Production is improving but, it continues to be demand exceeds.
Commodity Updates Eastern Cucumbers: Janine Baird With Michigan temps rising slightly and the rains easing off, this market should settle by mid week. There was little to no volume over the weekend so the front of the week should continue to see an active market. EGGPLANT Western Eggplant: Jaime Contreras Market is on an upward trend. Expect lighter supplies on large fruit due to field production sizing down. Eastern Eggplant: Janine Baird This market should stay at the lower levels for the most part of the week, but watch for quality issues out of Michigan stemming from heavy rains... GRAPES: Amy Grolnick The market on the red grapes is steady to higher in California still with light demand. Quality is excellent. Greens are tightening up a bit as several shippers’ transition out of Thompson and Princess into Autumn King. Next week we may see a bump in the market. Pristine have just started in a light way. Black Seedless and Red globe both have good supplies. GREEN ONIONS Gabe Romero/Mike Pacheco This market is steady. Supplies have tightened up out of Mexico where most suppliers are pulling the product from. The quality continues to have a few issues with decay upon arrival. Pencil sizing will have the best availability. LEAF LETTUCE Gabe Romero/Mike Pacheco The leaf market has firmed up. Romaine has become tighter in availability compared to the beginning of the week. There continues to be some issues of bugs on the romaine so please beware. A few suppliers have reported this. Romaine hearts continue to have issues of fringe and tip burn. Carton romaine has had the same issues. Multiple shippers have reported this. Green and red leaf is light to moderate in availability. Demand has picked up. LETTUCE Gabe Romero/Mike Pacheco The lettuce market is firm. Suppliers continue to have moderate to good availability. Santa Maria continues to have production. Good strong weights are being reported from all the
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growing areas. Weights are reported to be 4245 pounds. Pink ribbing and decay issues have been minimal. The availability should good throughout the week on this commodity. MELONS: Amy Grolnick Cantaloupe: Several shippers are gapping at the end of this week until Monday. The fields they are in finished up earlier than expected and the new fields are still not ready to start harvesting. Supplies should be better Monday as new fields get going. Quality is excellent. Honeydew: The Westside is going strong with sizes peaking to 5’s and 6’s but all sizes available. The market remains steady. A few shippers will be finishing up for the season so we may see a little market. ONIONS John Tole The northwest is steady to lower on yellows and offering volume deals on jumbos and colossal in Idaho/Oregon and on jumbos and mediums in Washington. Supplies are good in all areas and the demand has been light. The northwest is still relatively short on colossals and supers but both markets are lower and inventories are growing. California will finish with yellows this week. Colorado is still producing mostly pre-pack & medium yellows. Red are also steady to slightly lower and supplies are better. Most packers are still peaking on jumbos and are short on mediums. Whites are steady to slightly lower in all areas with good supplies available. The quality has been good on colors, in all areas. POTATOES John Tole Carton potatoes are plentiful in all areas. Idaho norkotahs are still peaking on 70’s & larger however there is no shortage of 80’s and smaller. Maturity had been a problem with some Idaho suppliers but the issues are starting to disappear. Washington norkotahs are still heavier to 70’s and larger. Colorado is still peaking on 60’s and larger but the smaller counts are available as well. Russet quality ranged from excellent to average depending on maturity. Stockton, California is steady on all colors but they have good volume of reds and will flex for volume orders. All colors are heavier to the larger size in California. Washington, Wisconsin, and Minnesota
Commodity Updates continue packing pack new-crop reds & golds and they are also steady to lower with better availability in the A-size. The colored potato quality has been good to excellent in all areas. SQUASH Western Squash: Jaime Contreras Market trending up on both Italian and Yellow S/n. Some growers are experiencing gaps. Additional demand from other parts of the country has also pressured markets. Some anticipated moisture this week will slow some harvesting. Eastern Squash: Janine Baird The squash market dropped considerably over the weekend as the warm, dry weather increased yields. Georgia has been working squash for the last several days and that volume is expected to increase considerably this week. The decreased demand on Michigan squash should keep this market down. STONE FRUIT Amy Grolnick Shippers are going to finish up early this season on all fruit. It looks like next week will be the last week to pack out for most if they have not already finished. California peaches continue to run very large with limited availability. Nectarines and plums are coming to an abrupt halt. All stone fruit is still running very large. California pomegranates have started with good supplies. Persimmons will start at the end of the month. TOMATOES Jay Martini Western: Finally, the potential of strength in the mature green tomato market in Californiaâ€™s San Joaquin Valley has taken hold. Most shippers are sold out for the week, and are contemplating whether to raise prices for next week. Adding fuel to the fire were sporadic rains north of Merced to the Sierra foothills. Look for the market to strengthen a little each week as we move into October. Eastern: With not enough product out of Tennessee, the Eastern Shore of Virginia/Maryland, and Michigan to supply Eastern repackers and receivers, prices have stayed high and will remain that way for the foreseeable future. Quality has been hit & miss. The fall crop in Quincy, Florida is still at least four weeks away.
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continued VALUE ADDED Gabe Romero/Mike Pacheco The lettuce quality and weights are very favorable. Supplies are adequate for all processorsâ€™ needs. The Romaine supplies are better in availability, but fringe burn is an issue processors are dealing with. Broccoli supplies are not an issue. The cauliflower supplies will be steady throughout the week. WATERMELON: Jaime Contreras Market is steady to trending up. Continued demand exceeds on s/less watermelon. Most availability will be in bins on s/less. Availability on seeded watermelon is sporadic. Arizona has wrapped up and most production is coming from central California with New Mexico having started production.