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The Source THINGS YOU SHOULD KNOW:

COMMODITY ALERT:

Domestic garlic supplies will be light in availability until approximately August. Chinese supplies are extremely light as well. Twelve week averages are in effect for all garlic AUAI orders

July 10, 2013

© 2013 PRO*ACT, LLC

Weather: Tim Lynch A fairly typical summertime weather pattern will return to the Salinas Valley this week following last week’s heat wave. A return of the marine layer near the coast with mid 90s in the interior valleys with 60s to low 70s near the coast will be the norm this week. Moisture streaming in from the south will bring humid conditions and a chance of thunderstorms mostly over the hills the next few days with gradual warming into the weekend. We are also monitoring Topical Storm Chantal which is currently approaching Haiti. This storm is expected to track along the eastern shore of Florida late Friday hitting landfall near the Georgia Carolina boarder late Sunday. Although it is not expected to reach hurricane level strength, heavy rains and winds will be associated with this system.

Potatoes continue with low pack outs

Freight: Mike McIntire Truck rates in CA are easing slightly as we get past th the July 4 pull. Trucks in the Northwest and Idaho are slightly more available. The national average for diesel is 3.828 for this week – up 0.011 from the previous week and up 0.145 from last year. CA diesel rate is 4.026.

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Commodity Updates APPLES/PEARS John Tole Washington Red demand is steady but the supplies are more prevalent than previously anticipated. Reds continue to peak on extrafancy 88/100’s. Golden Delicious is steady and heavy to 88/100’s as well. Granny-Smiths are also steady and they are still heavier to the 80’s and larger. Galas are steady on most sizes and grades but the availability is extremely limited. Fuji’s are peaking on 88’s and larger and the market is steady and supplies are very light. Washington D’Anjou’s pear supplies remain light and the market is steady. The remaining fruit is mostly 100’s and larger and the US#1 grade. California has started packing new-crop Bartlett pears and they are peaking on 100’s and smaller. ASPARAGUS Gabe Romero/Mike Pacheco The supplies have tightened up from Mexico. This market is active. Washington is done for the season and California supplies are finished as well. Production from Peru can be purchased in Miami or LA. Good quality is being reported on Peruvian and Mexico product. AVOCADO Tim Kelley Demand remains strong and for avocados. Shipments are still setting industry records. Mexico’s supplies have dropped drastically and Mexican growers are demanding much higher field prices than US shippers are willing or able to pay. California is seeing a drop in volume coming in from growers due to the current heat wave in California. The size curve has adjusted upward slightly producing more of the larger fruit and shorting the supplies of the smaller fruit; overall resulting in a rising market on the 60’s and 70’s and an industry not getting enough supply to meet demand. Peruvian fruit has arrived and is helping out the supplies of larger fruit, but not much on the small fruit. BELL PEPPERS Western Bells: Mike Cantu Green bell market is steady. Crops are currently shipping from Southern and Northern California with all sizes available. Loading from Fresno, Bakersfield, Thermal, Gilroy, and Los Angeles. Open field colored Red bell market is generally steady. Good availability from Southern and Northern California. Gold bells

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Commodities at a glance… Commodity

Quality

Market

Apples Asparagus

Good Good

Steady Higher

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

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

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

Eggplant (Western)

Good

Steady

Eggplant (Eastern)

Fair

Lower

Good Excellent Good Fair Fair

Steady Steady Steady Higher Higher

Melons: Cantaloupe

Good

Steady

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

Excellent Good Good Good Good Fair Good Good Varies Excellent

Steady Steady Steady Higher Unsettled Higher Steady About Steady Higher Steady

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


Commodity Updates Z market continues steady availability depends on growing district. Eastern Bells: Janine Baird We should see pepper begin to tighten up this week as Georgia is now on their final round of pepper. North Carolina is going with pepper but it is all crown picking and still hit and miss on volume.

BERRIES Mike Gorczyca Strawberries- Demand is still good with moderate to good supply. The market is steady. Quality is fair due to overripe fruit being packed currently, which is showing up with bruising and slight decay. It will be very critical to monitor the cold chain management and inventory turnover. Please only order what is needed. The quality should slowly improve over the next week or so. Fruit will have difficulty traveling to the East Coast. The Salinas/Watsonville growing areas are in their peak production currently which should continue into the next couple of weeks, and then we should see harvest numbers start to back off. Fruit size is medium running in the 18 count to 22 count range. Strawberries are still be harvested in Salinas/Watsonville and Santa Maria growing areas. Santa Maria has hit and miss quality depending on shipper with fruit sizes being medium. The forecast will be a cooling trend for Thursday and Friday ranging from low-mid 70s with marine layer of clouds during the mornings. Warmer temps are expected throughout the weekend. Raspberries: Supplies are mainly coming out of Watsonville and Oxnard. Market is steady with supplies decreasing slightly which is keeping availability tight. Demand is very good and quality is reported as good. Blackberries: Market is lowering with moderate demand out of Watsonville /Salinas. Quality is good to fair depending on the lot. Blueberries: The west coast supplies are coming out of Oregon and Washington. The next growing region will be British Columbia which is ramping up this week. Improved weather should help out harvesting dramatically with better production. Quality is being reported as good and the market is steady with fairly light demand. The main pack is 6 oz and pints. East coast Georgia Blue’s is done for the season. Main east coasts supplies

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continued

are coming out of New Jersey, with good demand at lower prices. North Carolina and Michigan are ramping up in the next couple of weeks. Supplies should start to be more available and the quality is expected to be good in these regions. Rain showers have curtailed harvest in some of growing regions. Tropical storm Chantal should be hitting southern east coast over weekend and expected showers and thunderstorms throughout next week. Main pack out of the East is pints. BROCCOLI Gabe Romero/Mike Pacheco This market is steady. Early forecasts from shippers indicate that crowns are more readily available than bunched product. This pattern of production will likely continue throughout the week. Demand overall is on the light side. CARROTS Tim Kelley Supplies and quality are good, and size is coming, bringing more JBO carrots to market and lower market. CAULIFLOWER Gabe Romero/Mike Pacheco The cauliflower market is steady. Supplies are expected to be moderate for the rest of the week. Prices will vary from shipper to shipper as some continue to be slightly better off than others. The overall quality is strong with very few complaints of yellow discoloration being reported. CELERY Gabe Romero/Mike Pacheco The celery market continues on a steady path. There is a very slight gap in pricing. With Oxnard finished in production, pricing has firmed up with a few suppliers. Large sizing, twenty-four counts in particular continues to be the best sizing available. Santa Maria is in production as well. Michigan celery is not due to start until the third week of July. Small sizing, 36s and smaller continues to demand a higher price. CITRUS Tim Kelley Lemons: Supplies are good on the smaller sizes and less abundant on the larger ones. Seasonal demand is good, keeping market firming weekly. Quality is good. Oranges: The Valencia oranges are fresh, in good condition and are eating well. Valencia


Commodity Updates Z sizing is currently peaking on113’s/88’s/138’s. Limes: Supplies are off a little with rains in the growing area of Mexico and condition has dropped off some due to these rains.

CUCUMBERS Western Cucumber: Mike Cantu Market is clicking up. Supplies still light as demand is still high. Cucumbers are mostly from Baja California and other from Thermal. Eastern Cucumbers: Janine Baird The cucumber market is extremely tight this week. Georgia is finishing up and the quality on the product that remains is very poor. Michigan is not yet into any real volume as they have been experiencing a lot of rain. The growing regions farther east also have very little volume. EGGPLANT Western Eggplant: Mike Cantu Eggplant market is steady with good supplies. Eastern Eggplant: Janine Baird Eggplant has come on strong in South Georgia with shippers looking to move on this item, as today’s pricing reflects. GRAPES: Amy Grolnick Flames have finished up in Coachella and Scarlet Royals are now available with good size and quality, they will be finishing up in the next week or so. Greens are pretty much cleaned up for the season in Coachella. Mexican grapes loading in Nogales, AZ are finishing up with mostly med/large fruit, very limited on size, and only fair quality at best. The Bakersfield area is starting with flames and Sugarones they are very good quality with good size. Green grapes are more limited but will have better availability over the next couple of weeks. The extremely high temperatures have stopped the fruit from coloring up and stalled the growth. However, with light demand there is still plenty of availability. GREEN ONIONS Gabe Romero/Mike Pacheco The green onion market remains unchanged. Supplies continue to be strong out of Mexico. Prices are expected to be steady throughout the week. Domestic green onions are in full swing harvesting. Quality is very nice form both growing regions

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continued

LEAF LETTUCE Gabe Romero/Mike Pacheco The romaine market is up with most suppliers. Tip burn has been reported. Supplies are light to moderate. The green leaf market is very active. Low yields and smaller planting by growers has caused a gap in the marketplace. Tip burn and dehydration has been reported sporadically upon arrivals. This market continues to be competitive with most suppliers. LETTUCE Gabe Romero/Mike Pacheco This market is active with all suppliers. Production is light. Early forecasts indicate lettuce numbers will be moderate to light for the rest of the week, and pricing will steadily increase. The gap in pricing is very minimal as pricing is active and competitive. Some lots have had arrival issues such as tip burn, some mechanical damage, and pink ribbing. MELONS: Amy Grolnick Cantaloupe: The Westside California product has started with excellent quality and good availability. Quality is excellent with high Brix and fruit is still peaking to 12’s and larger, with very limited availability of small fruit. Honeydew: Mexican dews continue to cross with less volume each week into Nogales. th There should be availability through July 13 . Domestic dews are available with steadily increasing volume. Demand is light and supplies have started to increase slowly with the domestic honeydews coming onto the scene. The market is still depressed. ONIONS John Tole Yellows are steady to lower in both New Mexico and California. The availability is good in both states on Colossals and smaller. The demand has only been fair so many shippers will flex for volume yellow orders. Reds are also steady to lower and the volume flex on jumbos is still available. Whites are also steady to lower in both districts with good supplies available. The quality has been good on all colors. POTATOES John Tole The Idaho carton market is higher and will continue to rise until we get new-crop Norkotahs in August. Most shippers are having


Commodity Updates quality issues with their Burbank storage supplies and the problems continue to get worse. Several suppliers have had storages slated to be packed that at the last minute did not make grade. Continue to order ahead on cartons to ensure timely coverage. Good quality storage lots are harder and harder to find in Idaho and future supplies are a question mark at best. Idaho will start packing new-crop between early and late August depending on the shipper. Washington & Colorado are both higher as well and supplies are limited. Colorado is also having some issues with storage quality. Washington will start packing new-crop Norkotahs by the end of July. Colorado will have new-crop Norkotahs from Nebraska and Kansas between late July and mid-August. Bakersfield, California continues packing new-crop Norkotahs and they are still heavy to 90’s and smaller. The new-crop russet quality is very good. Bakersfield is finished packing all colors. Stockton, California is packing new-crop red, white, and gold potatoes and they are all peaking on A-size. SQUASH Western Squash: Mike Cantu Market continues unsettled on both Italian and Yellow S/N. Light supplies of yellow s/n squash causing market to inch up as demand pressures pricing. Growing districts are in both northern and southern Ca. Eastern Squash: Janine Baird Squash in Georgia is all but finished and there has been too much rain in Michigan and New Jersey to shoulder the demand. This market will get increasingly stronger as the week goes on. STONE FRUIT Amy Grolnick The California stone fruit season is in full swing with plenty of good quality product. Peaches, Nectarines, Plums and Pluots are plentiful. Brix are high and fruit is eating really well. There are several varietal stone fruits available as well. Washington cherries are available with increasing volume. TOMATOES Aaron Aliotti Western: California is in full swing of production but 100 degree weather over growing areas has caused supplies on rounds

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Continued to tighten sending buyers to the east where prices are up. A high pressure system is forecasted to strengthen through the early part of next week with cooler temperatures returning mid week until the end of July when another heat wave ay develop. Roma, grape, and cherry tomatoes have adequate supply but are expected to improve in volumes during the cooling period next week when cooler weather allows for more fruit to enter the pipeline. Eastern: Northern Florida finished up last week with South Carolina wrapping things up in the next couple of weeks due to a late start this season. Heavy rains over the Eastern growing regions coupled with increase demand have caused prices to increase $2 - $3. Also in the next couple of weeks, multiple growing areas will be bringing rounds to market from Virginia, North Carolina, Tennessee and Kentucky; all which have experienced rainy weather as well. Quality will vary from region to region. Tropical Storm Chantal is currently near Haiti and expected to brush the eastern Florida coast this weekend bringing more rain and wind to the area causing the market to remain elevated. VALUE ADDED Gabe Romero/Mike Pacheco Lettuce supplies are on the lighter side, overall, the quality is fair. There are ample supplies of romaine to fill the processors’ needs. Romaine quality has been suspect with signs of tip burn and some decay showing up in the finished product. Broccoli raw product supplies will be steady this week. The cauliflower supplies will be ample to fill all orders. WATERMELON Mike Cantu Market is steady. Demand exceeds on s/less watermelon. The growing districts are in Yuma and Phoenix, AZ. Availability is sporadic on seeded and seedless. Growing districts in Yuma and Phoenix are almost done.

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